Pre-tax profits at Majestic Wine have plummeted more than 25 per cent to £5.6 million for the 26 weeks to September 29.
Total sales were up 3.4 per cent to£94.1 million, but like-for-like sales dropped 2.1 per cent.
Like-for-like sales in the subsequent five weeks to November 3 dropped further, down 4.7 per cent.
Champagne sales were particularly poor for the drinks specialist, falling 6.4 per cent on last year. However, fine wine sales continued to increase up 10.7 per cent and Majestic will now introduce dedicated fine wine areas to 53 of its stores for Christmas.
Majestic chief executive Steve Lewis said: “I am pleased that we have maintained our UK wine market share in such challenging conditions. I am confident that Majestic, with its robust business model and highly differentiated customer proposition, can maintain its market position.”
The strength of the euro against sterling, combined with rising fuel costs, resulted in a marked decrease in sales for its French business. Like-for-like sales in its French stores plummeted 24.6 per cent for the period.
By the end of the year, Majestic will have 148 stores across the UK.
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