HMV announces poor full-year sales

HMV has reported a 12.1% decrease in like-for-like sales in another troubled year for the retailer.

HMV

The entertainment retailer announced sales from stores open for a year or more totalled £923.2m in the 12 months to 30 April.

This comes as a new chief executive takes over at the beleaguered high street giant. Current CEO Simon Fox is to step down in September, to be replaced by Jessops boss Trevor Moore.

The decrease in sales has contributed to the group’s overall £16.2m loss before tax, in contrast to its 2011 results of a £16.2m profit.

HMV has particularly suffered from the increasing competition from downloading, streaming and internet retailers.

However, it identified a strong increase in technology sales as a highlight, and said it is becoming a “credible destination for an expanding range of entertainment devices such as Google’s Nexus tablet”.

The retailer said it had a “good market share performance in music, films and games” and “remains confident” that it will return to profitability and will continue to develop its technology sales.

Fox said: “The last year has been a difficult and challenging one for HMV and, as expected, this is reflected in our annual results. However, we are confident that the actions we have taken will enable us to significantly improve cash generation and make profits of at least £10 million in the year ahead.

“Although we have clearly been through a turbulent period, our financial position is now stable thanks to the support of our suppliers, banks and colleagues, and I am confident, as I hand over the reins to Trevor Moore, that HMV has a secure future under his leadership.”

HMV announced earlier this year that it was planning a raft of digital and marketing strategies to boost sales. It outlined plans for click and collect service and in-store wi-fi to improve the customer experience, as well as a number of mobile apps and better online integration of its PureHMV loyalty programme.

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