Growth in product mix boosts HMV

Samantha Loveday

By Samantha Loveday

July 1st 2010 at 10:27AM
Growth in product mix boosts HMV

Move into fashion and licensed novelties helps retailer to increase in group sales in full year.

High Street entertainment retailer HMV has seen its group sales grow by 3.1 per cent, resulting in record sales in excess of £2 billion for the full year ending April 24th 2010.

Profit before tax was up 17.7 per cent to £74.2 million (2009: £63.0m), with the chain reporting market share gains across all product categories in HMV UK.

Key to the growth was the increase in products outside of HMV's traditional music, DVD and games sectors. This includes more fashion-led items, plus an increased presence for licensed novelties and gifts in-store.

"The group's full year performance was pleasing, with record sales and a 17.7 per cent increase in profits, driven by a strong performance at HMV UK, as we continue to transform this business into a broad-based entertainment branfd," said Simon Fox, chief executive.

"Whilst at an early stage, the three pillars of our new strategy to continue to evolve HMV's product mix, grow in live and ticketing and turn around Waterstone's are progressing on track, as we continue to position the group for the changes that are taking place in our markets."