Shrinking DVD and CD sales push HMV into £38.6m loss

HMV: retailer predicts a further fall in physical music sales in the next year
HMV: retailer predicts a further fall in physical music sales in the next year

Declines in HMV's core markets have pushed like-for-like sales down 12.1%, forcing it into the red for the year as it attempts to become the UK's "leading entertainment brand", under a new management team.

Physical music sales fell 19% over the year and the business expects them to drop another 20% in the next year.

Visual sales fell 13% and games fell 17%, underlining the scope of the challenge facing the retailer in the wake of the disposal of Waterstones and HMV Canada, and its ongoing attempts to dispose of its live entertainment business.

The company reported a pre-tax loss of £38.6m on sales of £873.1m in the 52 weeks to 28 April, according to the statutory results for its continuing operations, which do not include the live entertainment business.

In the UK it closed 23 stores and opened one during the financial year, while on Tuesday (7 August) it completed the sale of the Hammersmith Apollo for £32m in cash to a company jointly owned by Anschutz Entertainment Group and CTS Eventim.

It described the sale as a "critical requirement to establish a stable capital structure".

Seeking bright spots amid the gloom, the company revealed its loyalty scheme has now acquired more than two million card holders since 2009.

It also said there was an opportunity to leverage further the value of the HMV brand and its retail presence through partnerships with technology device suppliers and other industry participants.

Under the new mangement team of chief executive Trevor Moore and group finance director Ian Kenyon, HMV said it expects to return to profitability over the next year.

Former Jessops chief executive Moore is to join in September, having been appointed last week when incumbent chief executive Simon Fox resigned.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug