Hmv Group Regulatory News (HMV)

3 Sep 2009 07:00



Interim Management Statement

3 September 2009

HMV Group plc will at today's Annual General Meeting (AGM) issue the following trading update for the 18 weeks ended 29 August 2009.

Trading Update - 18 weeks ended 29 August 2009

At the AGM, Simon Fox, HMV Group plc Chief Executive, will comment:

"In a tough consumer environment, the Group has made a solid start to the new financial year. Our plans for the peak selling period are in good shape, and with a strong line-up across all product categories our focus is on providing our customers with the very best offers for Christmas.

"The strategic initiatives that comprise our three-year plan are on track, and beyond this we are continuing to drive new initiatives for further growth."

Trading highlights

Total sales growth in HMV & Ireland of 12.5%, including like for like sales up 1.7%, driven by strong market share gains across all product categories combined with the successful integration of 29 former Zavvi stores

In HMV International, where share has been broadly maintained, we are continuing with our plans to accelerate growth in games, technology and related products to offset structural change

Waterstone's total sales declined 2.6%, including like for like sales down 3.4%, broadly in line with the book market.

Gross margins for the period continued to be well managed and are in line with previous guidance.

Strategic and operational highlights

Orange concessions successfully rolled-out to 17 stores, with a further 11 expected in the next few weeks

Growth of Purehmv loyalty card memberships ahead of expectations

Inaugural HMV Curzon digital cinema on track to launch in October 2009 at HMV Wimbledon

Joint venture live music venues and HMV ticketing offer continuing to maximise artist and label relationships and cross-selling opportunities

Waterstone's UK store estate and Internet fulfilment now successfully migrated to book hub.

New strategic initiative to drive digital growth

The Group is delighted to separately announce today the acquisition of a 50% equity stake in 7digital.

As required by the Interim Management Statement Provisions, the Group confirms that there has been no significant change in the financial position of the Group in the period since the Preliminary Results to the date of the AGM.

The Group's next trading update will be at the announcement of its Interim results on 11 December 2009.

Notes to table:

1. Like for like sales growth and total sales growth for the 18 week period are stated at constant exchange rates, being the weighted average exchange rates for the year ended 26 April 2009 

2. HMV Group's like for like sales performance is calculated at constant exchange rates and measures stores that were open at the beginning of the previous financial year (i.e. open at the beginning of May 2008) and that have not been resized, closed or re-sited during that time. It includes sales from Internet sites and is only ever the net amount received.

3. HMV International comprises the results of HMV Canada, Hong Kong and Singapore. 

Enquiries

** All enquiries on 3 September 2009 should be directed via Brunswick