Music group HMV today said it saw strong trading over Christmas, with sales rises in both its music shops and its Waterstone’s bookshop chain.
For the five weeks to 4 January, like-for-like sales at its HMV stores rose 4.2%, while at the recovering Waterstone’s chain they were up 5.6%.
Chief executive Alan Giles said: “Following a strong Christmas, when every one of the group’s businesses performed well, we remain on track to meet our financial targets.”
The Christmas update came as HMV showed a rise in operating profits over the last half year.
Operating profits for the 26 weeks to October 26 at HMV rose 40% to £14.4m while Waterstone’s – which the group is turning around after a difficult time – was up 6.6% at £2.9m.
Group turnover was up 2.4% at £715.7m. However, one-off costs – part of which related to its flotation last year – knocked the group into the red.
Pretax losses came in at £30.3m, against £15.9m last time.
Giles added: “We have increased sales and profitability in some challenging markets, and accelerated our successful store opening programme for HMV in the UK.”
He said despite an uncertain consumer outlook, he was optimistic about the group’s future growth.
HMV has 542 stores in total. In the UK and Ireland it has 155 HMV shops and 197 Waterstone’s stores.
The group was formed four years ago when EMI spun off HMV and Dillons, and the new business bought Waterstone’s from WH Smith.
It floated on the London Stock Exchange in May at 192p, but shares have tumbled following the listing. Shares today jumped 8p to 123p.
EGi News 16/01/03
