By Marcus Leach
High street retailer HMV, who have hit hard times of late, reported a drop in their Christmas sales today (Monday).
The company reported a decline in their music and film business as like-for-like sales fell 8.1% in the five weeks to the end of December.
Christmas trading update
- 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.
- 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
- The previously announced strategic review of HMV Live is continuing to make good progress.
- 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.
- The Directors continue to maintain regular discussions with the Group's banks and these discussions remain constructive and positive.
"The continuing actions to focus the business and to expand our Technology offering are beginning to show through," Chief Executive Simon Fox said.
"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."
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