17th Jan 2008 07:00
HMV Group PLC17 January 2008 Announcement of Interim Management Statement and Trading Update 17 January 2008 HMV Group plc today announces its interim management statement for the 10 weeksended 5 January 2008, and provides an update to the market on its tradingperformance for the five-week Christmas period. Christmas Trading (five weeks ended 5 January 2008) - Group total sales up 9.9%, including like for like growth of 9.4% - HMV UK & Ireland total sales up 16.1%, including like for like growth of 14.1% - strong sales and market share performance across all product categories - gross margins maintained, despite higher mix of games - Waterstone's total sales up 0.5%, including like for like sales growth of 4.0% - gross margin up 30 bps, despite highly competitive book market - HMV International total sales up 2.3%, with like for like sales down 0.6% Operational Highlights - Turnaround initiatives progressing according to plan, including flexing the product mix towards higher growth games and technology in HMV - Online credibility established as hmv.com and waterstones.com continue to deliver rapid sales growth - Results from HMV 'Next Generation' store trials provide basis for roll out - One million Waterstone's loyalty card members, four months after launch Outlook - Continued focus on Group's three-year turnaround plan to protect and revitalise the core retail business, drive cost efficiencies and grow new revenue channels - Gross margins for the year expected to be in line with previous guidance, given at Interim results - Full year PBT expected to be towards the upper end of current market expectations* Commenting, Chief Executive Simon Fox said: "Less than a year into our transformation programme the initiatives we areundertaking to revitalise our business have helped to deliver a highlysuccessful Christmas. Having stabilised the business, we will continue to focuson revitalising our store propositions as well as growing new channels to marketand carefully managing margins and costs. The Group is, therefore, wellpositioned for the next phase of its turnaround." As required by the Interim Management Statement provisions, we confirm thatthere has been no significant change in the financial position of the Group inthe period since the Interim results to the date of the Christmas tradingupdate, save for the information contained within this Interim ManagementStatement. *Market estimates for PBT for the financial year ended April 2008 are in therange of £43m-53m, with a consensus of £48.0m. (Reuters Knowledge / HMV Groupplc.) Enquiries HMV Group Simon Fox Group Chief Executive 01628 818355 ** Neil Bright Group Finance Director Finance Director 01628 818355 ** Paul Barker Director of Corporate Communications 01628 818355 ** Brunswick Susan Gilchrist 020 7404 5959 Eilis Murphy Alex Tweed ** All enquiries on 17 January 2008 should be directed via Brunswick. TRADING UPDATE---------------------------------------------------------------------------------------- Five weeks ended 10 weeks ended 5 January 2008 5 January 2008---------------------------------------------------------------------------------------- Like for like Total Like for like Total sales (decline) sales (decline) sales (decline) sales (decline)% growth2 growth2 growth2 growth2----------------------------------------------------------------------------------------HMVUK & Ireland 14.1 16.1 12.0 14.3International3 (0.6) 2.3 (1.5) 1.5----------------------------------------------------------------------------------------Total HMV 11.6 13.7 9.8 12.1Waterstone's 4.0 0.5 3.3 0.0----------------------------------------------------------------------------------------HMV Group 9.4 9.9 7.9 8.6---------------------------------------------------------------------------------------- 1. The five-week period ended 5 January 2008 reflects trading over the key Christmas period, while the 10 weeks ended 5 January 2008 covers trading since the half year. The corresponding periods last year are the five weeks and the 10 weeks ended 6 January 2007. 2. Like for like sales (decline) growth and total sales (decline) growth are stated at constant exchange rates. 3. HMV International comprises the results of HMV Canada, Hong Kong and Singapore. The comparative period has been adjusted to exclude HMV Japan, which was sold on 25 August 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hmv Group