Like-for-like (LFL) sales for HMV UK & Ireland fell 14.9 per cent year-on-year during the first quarter, whilst total international sales fell 9.4 per cent.
During a transitional period for the group, total sales fell 5.9 per cent but in more bad news for their traditional revenue streams, once sales from its new live music business are excluded that figure rises to a 9.9 per cent decline.
Along with publishing trading results, the group also holds its AGM today where Simon Fox, HMV Group CEO, will explain the groups performance to shareholders.
Fox is expected to say: “As was highlighted with the Group’s preliminary results on June 30th 2010, trading during the first quarter of the new financial year has been difficult, particularly in HMV UK & Ireland, where the World Cup disrupted the pipeline for new entertainment product, and the games market continued to be weak.”
In better news for the retailer, Waterstone’s market share improved over the quarter and ebook sales have increased 73 per cent year-on-year.
The book retailer LFL sales fell 2.6 per cent during the quarter but this was a better result than the 6.2 per cent fall recorded in July’s full-year results.
Various new business enterprises have been started by HMV in recent months, including the sale of digital radios, the launch of an online music download service, a new fashion range and the expansion of its live music operations.
Fox will add: “We continue to make good progress on all three parts of our strategy, including the turnaround of Waterstone’s, where the initiatives to strengthen our specialist positioning, localise our store offer and revitalise our market leading brand have had a positive impact on trading.
“Overall our plans for the peak trading period are in good shape, and our focus is on providing our customers with the best offers across all product categories and live venues.”
HMV also announced that Neil Bright, their Group Finance Director, is set to leave the company in December to join Holidaybreak Plc.