We already knew that the dividend has been put into abeyance for the next couple of years.
Yesterday we learned that costs will be higher than expected for the next few years, so profits will be lower.
I view Gormley’s arrival at Majestic much as I did James Daunt’s at Waterstones.
Both are passionate about what they sell and impart that enthusiasm to staff and customers, and both need to be given time to put things right.
Browsing and tasting wine can be just as satisfying as browsing a good bookshop.
I also believe we should support independent wine sellers just as much as we should support independent bookshops against the power of the supermarkets and Amazon.
I freely admit that I most recently tipped Majestic shares shortly after Gormley’s arrival, when they stood at 430p.
That means that at their current 316p, they are not only cheaper but also even better value.
"Investing in staff and customers is more likely to produce rewards than investing in bricks and mortar."
<p>Nick Goodway</p>
Gormley has set a target of £500 million in sales by 2019, a pretty tough ask given that revenues for the year that ends next March will be a shade under £400 million. But most analysts seem to think that it is achievable.
Although the numbers coming from analysts yesterday looked much lower, this was largely because of the shift from capital expenditure to operating expenditure.
Investing in staff and customers is more likely to produce rewards than investing in bricks and mortar.
Meanwhile, as light relief, Gormley’s tips for Christmas drinking are lightly oaked chardonnays, craft beers and, particularly he says, “it’s time to get stuck into craft gins” with Durham Gin his top recommendation.
