The entertainment group – which also includes book specialist Waterstones – revealed that sales were up 3.5 per cent, but like-for-like sales had fallen flat. Like-for-like sales at HMV’s UK and Ireland retail stores were actually up 1.6 per cent, whilst Waterstones’ sales had dropped 3.1 per cent.
The firm’s underlying debt has also increased from £27.2m to £73.6m after it revealed it has refinanced with a new three year, £220 million syndicated Bank Facility.
The company cited the weakening of certain entertainment markets and the fall in consumer confidence as the reason behind the latest results.
However, despite the losses HMV’s games and technology mix has leapt 23 per cent following the launch of its pre-played games range. And CEO Simon Fox is confident about the peak trading period ahead:
“Whilst High Street retailing conditions are undoubtedly tough, at this stage in our financial calendar we still have our peak trading period ahead of us. Our stores and websites are very well prepared for Christmas, and we are confident that our customers will receive great service and product availability however they choose to shop.”