This financial year sales of entertainment goods haven’t been strong said HMV, and the poor weather hurt numbers too. They’re still ”profitable”.
”Whilst HMV has had a challenging year to date, it remains a profitable and cash-generative business and a powerful entertainment brand,” said HMV boss Simon Fox.
”The pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business.” For the 5 weeks leading to January 1st sales were down 12.9 percent compared to the year previous, and for the 10 weeks to the beginning of 2011 they were down 13.3 percent.
The harsh weather the UK experienced devastated what is traditionally a great time for retailers to cash in. Transport was grinded to a halt with many warning that ordered goods online simply wouldn’t arrive in time for Christmas Day.
HMV expects to fall short of their full year profit prediction by £46-60 million. The market for boxed games has fallen 30% these past two years report UKIE and Chart-Track.
