HMV Group plc
HMV: 2005/6 results
The 5.7% like-for-like fall in HMV’s sales was disclosed in the last trading statement and the 22% decline in operating profit is the natural result of it.
Although the decline in sales was offset by expansion the gross profit from a slightly lower (2% lower) level of sales has to cover the increased costs of the […]
HMV: full year trading statement
Despite supposedly successful new pricing and promotions HMV’s sales continue to decline. Group sales fell 5.7% like-for-like and, despite expansion, total sales fell 1.5% (both at CER). Sales toward the year end (i.e. since the period covered by the Christmas trading statement) worsened slightly.
As in the first half, a reasonably like-for-like performances in Asia (+8.5%) […]
HMV: Offer for Waterstones
Tim Waterstone, the founder of the Waterstones chain of bookshops now owned by HMV, has expressed interest in buying Waterstones at an indicative price of £280m.
We regard this as an very good offer for a business that not very profitable (operating profit of £25m last year but likely to be lower this year) and […]
HMV: offer from Permira
Private equity firm Permira has indicated that it is willing to buy HMV for 210p a share.
HMV has rejected the offer.
HMV is not particularly highly rated at this price (a prospective PE of around 11× - but neither does the market and the price does represent a 27% premium on the price before HMV confirmed […]
HMV: Christmas trading and H1 results
HMV’s sales declines over Christmas were not as bad as in the first half and expansion meant that total sales grew by 2.1%. There were nonetheless significant like-for-like declines in the two largest businesses: 5.5% at HMV UK & Ireland and 2.4% at Waterstones. These were only partially offset by continued (if slightly lower) like-for-like […]
HMV trading statement
As we expected HMV is facing increasing competition and its like-for-like sales have fallen sharply in its core UK businesses, HMV and Waterstones, which between them generate about half of group sales and the bulk of profits. HMV UK & Ireland’s (the music chain’s) sales fell 3.7% in total and a disastrous 9.2% like-for-like. HMV […]
HMV full year results
The main driver of HMV’s operating profit growth in 2005 was the closure of the loss making US business. Sales growth was largely driven by expansion and there was little like-for-like growth. If the benefits of US closures is stripped out HMV’s margin expansion disappears.
Trading has worsened since the year end and like-for-like sales growth […]
HMV trading statement
HMV performed well over Christmas but the rest of the 2004/5 financial year (both before and after Christmas) was weak and LFL sales were up just 1.1% over the year as the whole. Even worse LFL sales in the last quarter of the year were down 2.2%. Both recorded music and book sales deteriorated in […]
HMV
Music and books retailer HMV performed well over Christmas but weakness earlier weakness has meant that the nubmers for the half year are as expected.
HMV UK and Ireland (the core HMV chain) produced 50% of sales and 77% of operating profits. It produced low LFL sales growth and a 7.7% fall in operating profits. […]
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