HMV chief to step down

HMV today reported a fall in Christmas sales and announced that chief executive Alan Giles is leaving the company.

Group like-for-like sales in the five weeks to January 7 fell 2.7 per cent, while UK & Ireland sales fell 5.5 per cent year on year.

The home entertainment group's first-half operating profit tumbled from£15.7 million a year ago to£2.8 million for the 26 weeks to October 29.

Giles will retire in December after eight years at the helm and will pursue non-executive directorships. The group will also have a new chairman, Carl Symon, who will take up the role as a non-executive on February 1. He succeeds David Kappler, who will remain a non-executive director.

For the 36 weeks to January 7, HMV's like-for-like sales fell 10.6 per cent, while its Asia Pacific and Canadian stores notched up 7.9 per cent and 6.6 per cent like-for-like sales rise respectively.

At Waterstone's, the firm's book arm, like-for-like sales for the five weeks to January 7 fell 2.4 per cent. Over the 36-week period, sales fell 6 per cent year on year.

Giles said that, despite the improving trend at Christmas, the group remains cautious.

'We remain focused on maintaining tight control of our costs and on maximising our performance over the remainder of the year,' he said.