Music up but books down at HMV

HMV has increased total group sales by 4.8 per cent, with like-for-likes remaining flat, in the 16 weeks to 25 April, the company has announced in a pre-close trading statement.

HMV UK & Ireland grew total sales by 11.7 per cent, but sales at bookseller Waterstones fell by 3.4 per cent, or by 4.5 per cent like-for-like.

The retailer says that it has managed gross margins well and is confident that its performance for the full 52 week period will be at the upper end of market expectations, with net debt of approximately £10m.

"Despite challenging conditions, the Group expects profits this year to be towards the upper end of market expectations. This has been driven by strong trading in HMV UK & Ireland, which continues to benefit from initiatives to transform the business, and from maximising the opportunities arising from competitors exiting the market. As expected, the book market remained weak during our final quarter and we are focusing on successfully completing the migration to the Waterstone's book hub to help to improve the financial performance in this business," says chief executive Simon Fox.

Preliminary results for the 52 weeks to 25 April will be announced on 30 June.