Announcement of Interim Management Statement and Trading Update
9 January 2012
HMV Group plc today announces its Interim Management Statement for the nine weeks ended 31 December 2011, and provides an update to the market on its trading performance for the five-week Christmas period.
TRADING UPDATE
| Five weeks ended 31 December 20111 | Nine weeks ended 31 December 20111 |
% | Like for like sales (decline) growth2 | Total sales (decline) growth2 | Like for like sales (decline) growth2 | Total sales (decline) growth2 |
|
|
|
|
|
HMV Retail | (8.2) | (16.9) | (9.8) | (18.4) |
HMV Live | (1.0) | 13.3 | (0.5) | 8.6 |
HMV Group | (8.1) | (16.6) | (9.7) | (18.0) |
Christmas trading update
Ø HMV Retail like for like sales are down 8.2% for the 5 weeks to 31 December 2011, representing an improvement in performance from that announced with the interims on 17th December 2011.
Ø In the 144 stores refitted with an extended Technology range of portable digital products, technology like for like sales were up 51% in the 5 weeks to 31 December 2011, an improvement in the previously reported average of 42% since the respective store refit dates.
Strategic Review & Outlook
Ø The previously announced strategic review of HMV Live is continuing to make good progress
Ø As reported on 19 December 2011, the Interim Statements were prepared on a going concern basis. However, the economic environment and trading circumstances create material uncertainties which may cast doubt on the Group's ability to continue as a going concern in the future, and these uncertainties continue.
Ø The Directors continue to maintain regular discussions with the Group's banks and these discussions remain constructive and positive.
Commenting, Chief Executive 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."
Notes
1. The five-week period ended 31 December 2011 reflects trading over the key Christmas period, while the nine weeks ended 31 December 2011 covers trading since the half year. The corresponding periods last year are the five weeks and the nine weeks ended 1 January 2011.
2. Like for like sales (decline) growth and total sales (decline) growth are stated at constant exchange rates.
As required by the Interim Management Statement provisions, this IMS covers the period between the beginning of the relevant six-month period and the date of publication of this statement and we confirm that there has been no significant change in the financial position of the Group in the period since the Interim results to the date of the Christmas trading update, save for the information provided in today's IMS.
Enquiries
HMV Group | Simon Fox, David Wolffe | 020 7404 5959 |
Brunswick | Mike Smith, Nick Cosgrove | 020 7404 5959 |
