HMV Q1 sales hurt by World Cup
09 Sep 2010
Music and DVD retailer HMV posted a 10.6% decline in first quarter sales as potential customers were distracted by the World Cup.
The group, which is struggling to compete with internet rivals and supermarkets, said UK & Ireland like for like sales in the 19 weeks ended 4 September 2010 fell 14.9%.
Like for like International sales at the music chain fell 8.1% during the period.
Sales at its revamped bookseller Waterstones fell 2.6%. HMV said it continues to make good progress in the turnaround of Waterstones with brand initiatives having a positive impact on trading.
Chief executive Simon Fox commented, "Trading during the first quarter of the new financial year has been difficult, particularly in HMV UK & Ireland, where the World Cup disrupted the pipeline for new entertainment product, and the games market continued to be weak."
Fox added, "In line with our new strategic plan, over the summer we progressed the changes to our stores that will enable us to drive our new fashion and enhanced technology offers. These initiatives, combined with a stronger product line-up, particularly in games, are key to the delivery of a successful Christmas."
Looking ahead to the key Christmas trading period HMV said its plans are in good shape.
Sales at HMV Live, which specialises in ticketing and live music, were up 8% at wolly-owned venues but down 5.9% overall.
HMV also announced the departure of finance director Neil Bright who is to join travel firm Holidaybreak.
