HMV sees profits slashed


HMV sees profits slashed
HMV suffered profit cuts of 20 per cent following a "highly demanding" year on the high street, the audio and video retailer has revealed.

In a disappointing set of annual results reflecting Britain's struggling retail sector, HMV announced that pre-tax negative profit growth of 20.7 per cent translated directly into a 20.9 per cent cut in the group's share value over the past 52 weeks.

"As we expected, trading conditions in the first few weeks of the new financial year have remained difficult," commented HMV's chief executive officer, Alan Giles.

"However, we are making excellent progress with a two-year programme of initiatives which we anticipate will begin to improve performance during the crucial Christmas trading period and, ultimately, transform the group into a world class multi-channel retailer."

Transitory initiatives within the group include its £11.8 million acquisition of rival chain Ottakar's, which helped HMV muster a net debt of £15.6 million.

The group also hopes to combat tough market conditions by reducing prices, improve its online sales and reduce costs, building on the £40 million saved in the last two years.

Although the World Cup has provided a boost to some areas of the retail sector, HMV's market niche appears to have been largely unaffected.

Yesterday's shop price index from the British Retail Consortium showed that efforts to encourage sales through price cuts are running out of steam as the rate of price reductions slows: overall adjusted shop prices rose by just 0.001 per cent, substantially less than the 0.42 per cent recorded in May.

With the latest Nationwide consumer confidence index showing gloomy predictions for summer retail sales following higher utilities and council tax bills, HMV's efforts to improve its position may only have a limited impact on its progress in the coming year.

Related categories: Management / Business, Retail / Wholesale.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

See also:

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure