Majestic Wine shares slump on profit, sales warning

March 20 (Reuters) - British wine warehouse chain Majestic Wine Plc warned full-year profit and like-for-like sales would be flat with last year due to challenging trading conditions since the start of 2014, and its shares fell as much as 20 percent.

The company, whose financial year ends on March 31, said trading in the 10-week Christmas period was satisfactory, with a 2.8 percent increase in like-for-like sales.

Majestic Wine (LSE: MJW.L - news) 's like-for-like sales in UK retail stores rose 1.1 percent in the seven-weeks Christmas trading period a year earlier, while like-for like sales rose 1 percent in the full year ended April 1, 2013.

The company said on Thursday profit before tax this year would be broadly in line with a year ago, when it posted profit before tax of 23.7 million pounds ($39.4 million).

N+1 Singer analysts pointed out that the lack of an Easter trading period this financial year would result in tough comparatives with a year earlier.

"Today's news comes as a clear disappointment ... and the shares will come under a lot of pressure in light of the expected downgrades," analysts Mark Photiades and Matthew McEachran said in a note.

Majestic Wine also forecast a "flatter profit growth profile" for 2015 as it spend to reach its long-term target of over 300 stores and setting up an e-commerce development team.

Investec (LSE: INVP.L - news) placed its rating and price target on the company's stock under review and said the warning was a "disappointing setback in what is a well-run and highly cash generative business".

Majestic Wine shares were trading down 19.4 percent at 408.57 pence at 1112 GMT on Thursday, dragging down the FTSE AIM All Share Index. ($1 = 0.6014 British Pounds) (Reporting by Aastha Agnihotri in Bangalore; Editing by Savio D'Souza)