Results: HMV sales up
HMV sales up 11.9%
Friday, 09 May 2008 09:15
HMV sales rose 11.9 per cent so far this year and the group expects profits to break expectations.
The music and DVD retailer posted like-for-like sales – sales from stores that were open a year ago – of 10.1 per cent for the 16 weeks to April 26th, 2008.
The retailer, which has been struggling to compete with supermarkets and online stores in selling DVDs and CDs, has focussed on the fast-growing games sector to boost sales.
The group said the positive response it has had to these "next generation stores", which give more space to consoles and games, means there will be a further roll-out of the format.
HMV has also set up its own website, which offers products at slightly cheaper rates than in its stores.
Chief executive Simon Fox said: "As we complete the first full year of our three-year turnaround plan, we are ahead of where we expected to be.
"We have made good progress driving forward our strategic initiatives to increase efficiency, revitalise our core business and establish new channels to market. We still have much to do, but I am confident that the group is well positioned for the next phase of our transformation."
For the next step, the company plans to develop its websites – hmv.com and waterstones.com – by integrating them into stores and increasing investment.
The retailer plans to provide customers with either a downloadable or physical format and will launch its own social networking site.
For the full year, HMV said it is confident that pre-tax profit will be at the top end of expectations, which is in the range of £46 million - £58 million. Preliminary results for the year will be released in July, HMV said.
At 08:33 BST, shares in HMV were up six per cent to 158.25p on the London Stock Exchange.
Sarah Routledge