HMV poised to return to profitability

Ben Parfitt
HMV poised to return to profitability

Sales at entertainment retailer HMV fell 19.4 per cent year-on-year for the 52 week ending April 28th.

Like-for-like sales fell 11.7 per cent during the period. For the 17 weeks ending April 28th total sales fell 19.2 per cent and like-for-like sales fell 12.9 per cent.

Profits are expected to be lower than previously forecast, although a return to profitability would be fantastic news after what has been a difficult year for the rejuvenated chain.

Positives were to be found in HMV’s Live operations, which posted total sales growth of 5.4 per cent for the year. However, a strategic review of Live in ongoing, with the retailer expected to sell it off at some stage in the future.

However, video game sales are said to be showing “continued progress”, and HMV for the first time admitted that the “disruption” at rival GAME bodes well for the year ahead.

“The last year has been a difficult and challenging one for HMV and this will be reflected in our annual results,” chief exec Simon Fox stated.

“However we are confident that the actions we have taken will enable us to significantly improve our profit and cash generation in the year ahead.”

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Tags: Retail , HMV , sales , profit , profitability

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