HMV upbeat despite Xmas sales slump

HMV’s retail sales dropped 8.2 per cent over Christmas.

It is obviously still a challenging time for the entertainment specialist, but the results are better than they were when the Group last updated the City in December.

The results are for the five weeks ending December 31st, 2011.

HMV’s improved performance is the result of an upturn in fortunes for music and film. Video games continues to remain challenging, while the company’s technology performance has grown dramatically. Sales of technology items were up 51 per cent for the five week period, again a stark improvement over December’s Interim Statement.

HMV is still considering the sale of its promising Live business. And although it is confident in its future, it warns that economic and trading environment ‘created material uncertainties which may cast doubt on the Group’s ability to continue as a going concern in the future.’

CEO Simon Fox said: "The continuing actions to focus the business and to expand our Technology offering are beginning to show through. We are seeing a combination of a slowing of the decline in Music and Film, and acceleration in the growth of Technology. Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV’s future prospects."