Profits and sales tumble at HMV

HMV Group has revealed a drop in pre-tax profits of 21 per cent to£98.2 million, in its full-year results today.

Group like-for-like sales for the year to April 29 fell by 5.7 per cent, with HMV UK and Ireland down nearly 11 per cent and Waterstone's down 6.1.

Chief executive Alan Giles said: 'Trading conditions in the first few weeks of the new financial year have remained difficult.'

Group like-for-like sales for the nine weeks to July 1 dropped 16.7 per cent at HMV stores and by 6.1 per cent at the Waterstone's chain. The group said the June heatwave and World Cup had kept customers out of its stores.

The music and book retailer said it would be rolling out simplified lower pricing by September this year and would be launching a web site, Waterstones.com, in the autumn. Sales at Hmv.co.uk were up more than 100 per cent year on year.