Music, games and books retailer HMV Group PLC said Friday that its first half losses narrowed 10 percent to 17.8 million pounds ($29 million) and that it hopes to capitalize on the woes of a major competitor.
A year earlier, the company had a loss of 19.8 million pounds.
For the 26 weeks ending Oct. 24, HMV said total sales were up 5.6 percent to 797 million pounds, though comparable store sales were down 2.1 percent. The Waterstone's bookstore unit continued to drag on the company, with total sales down 4.3 percent, or 5.1 percent on a comparable stores basis _ that is, excluding new store openings.
The difficult trading environment last month drove a competitor, Borders U.K., to file for administration, a form of bankruptcy protection. Borders U.K., which operates 45 stores, is an independent company spun off from the U.S. retailer two years ago.
"The group continues to operate in challenging and highly competitive markets, particularly the book market, where Waterstone's performance remains weak, although the recent administration of Borders U.K. may benefit the Group in the medium and long term," HMV said.
Total sales in the U.K. and Ireland rose 12.8 percent, largely because of the acquisition in January of 32 stores from the collapsed Zavvi chain. Like-for-like sales were up 1.6 percent.
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On the Net: http://www.hmvgroup.com
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