HMV UK and Ireland sales have fallen 15.3 per cent for the 26 weeks ending October 23rd, 2010.
The overall group sales – which includes book retailer Waterstones – are down 6 per cent to 749m, compared to the 797m posted in 2009. The loss after tax is at 30.5m, compared to the 17.8m loss in 2009.
CEO Simon Fox blamed the weak entertainment market – in particular games – for the fall, with the firm hoping to turn fortunes around this Christmas. T
he festive period typically accounts for 60 per cent of HMV’s fortunes, and the retailer warns that the first few weeks have been ‘undermined by the severe weather, which has significantly affected consumer footfall.’
"The increased seasonal loss reflects the tough trading conditions in HMV UK, where good progress in growing new product categories was not sufficient to offset weak entertainment markets," said Fox.
"In Waterstone’s, the recovery plan is on track, and in all businesses we are very well prepared for the important weeks ahead, with a strong line-up of offers across all product categories and a focus on delivering high quality service both in-store and online."
The retailer highlights Kinect, Black Ops, Assassin’s Creed Brotherhood, Take-That, Cheryl Cole, Twilight and Toy Story 3 as its key sellers this quarter.