HMV says underlying sales growth slows
HMV Group, the music, DVD, games and books retailer, said underlying sales had continued to grow but at a slower rate as economic conditions worsened.
Maturing mobile phone market growth to slow"In what is, undoubtedly, a tough consumer environment, the solid start made by the group to the new financial year means that our plans are in line with the board's expectations, and I remain confident that our strategic initiatives are on track," said chief executive Simon Fox in a statement published ahead of the group's annual shareholders' meeting.
HMV, which is one year into a three-year turnaround plan, said its like-for-like sales for the 18 weeks to August 30 increased 1.3 percent.
This was broadly in line with analysts' expectations but a slowdown from growth of 10.1 percent in the previous quarter.
The outcome was driven by like-for-like sales growth of 4.3 percent in HMV UK and Ireland, with market share gains in all categories, and growth of 2.9 percent in HMV International.
However, it was held back by a 4.3 percent fall in like-for-like sales at the Waterstone's book chain, reflecting a weaker book market and tough comparative numbers.
HMV said gross margins, a measure of profitability, were in line with previous guidance.
Shares in HMV closed Thursday at 131.75 pence, valuing the business at 531.5 million pounds.
The stock has risen 11 percent over the past year, outperforming the FTSE Allshare Index by 45 percent.
(Reporting by James Davey; Editing by Louise Ireland)
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