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HMV financials note further losses, “significant doubt” on retailer’s future

Tuesday, 20th December 2011 00:31 GMT By Brenna Hillier

UK retail chain HMV has posted grim financial results and admitted that the company’s future does not look bright.

Gamasutra reports HMV’s latest financials briefing noted revenue of £364.9 million ($566.5 million) for the six months ending in late October. That’s a 17.6% decrease year on year, down from £442.7 million ($687.3 million).

The retailer noted losses of £50.1 million ($77.8 million) over the past six months, meaning the chain lost £19.2 million more than in the same period last year.

Chief executive Simon Fox described the six month period as “challenging” and said HMV had taken “decisive action to restructure the business”, with results already noted in the Technology products sector.

“Like all consumer-facing companies we are facing tough trading conditions but we continue to push forwards through this period. We remain well prepared for the key trading days ahead,” he added.

Echoing this, a general statement said the retailer has “adequate resources to continue in operation for the foreseeable future,” but said a general economic malaise “may cast significant doubt on the Group’s ability to continue as a going concern in the future.”

Founded in 1921, HMV is a global entertainment retail chain and the largest of its kind in its home territory of the UK and Ireland.

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8 Comments

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  1. LOLshock94

    :( HMV is the only shop i go to, buy and sell games

    #1 2 years ago
  2. triggerhappy

    I honestly can’t remember the last time I walked in to a shop and bought a game. I order everything from amazon and the likes these days, its always cheaper and I get it through my door on release date, shops just can’t compete with that.

    #2 2 years ago
  3. AHA-Lambda

    @2 +1

    #3 2 years ago
  4. freedoms_stain

    This Christmas I only bought 3 things in physical shops, 2 of those were items of clothing, and the other was a scented candle because I ran out of ideas and I was looking for some piece of shit to tick a box.

    Every CD and book I bought was from Amazon, hell I even bought an item of cookware and a kitchen accessory from Amazon, and even after paying delivery for some of the items, came out probably about 40% cheaper than paying highstreet.

    When I was a student HMV online was epic btw, they matched play.com and Amazon, and on top of that I could apply student discount on anything basically making them the cheapest online retailer in the UK for students. These days their inventory is pretty weak (basically the same sort of shite you get in their stores – no real back catalogue) and the prices are no longer wholly competitive – i.e. I would formerly have expected hmv.com to at least price-match amazon and play on the majority of items, now the majority are more expensive with the odd item competitive or cheaper.

    I dunno why their online business changed the way it worked, but clearly it was a stupid move.

    #4 2 years ago
  5. jnms

    I just can’t understand why anyone buys in HMV anyway. Their prices are crazy!

    It’s not the ‘economic situation’ that is ruining them. It’s their mad pricing strategy.

    #5 2 years ago
  6. Ireland Michael

    Christ, you people are pretty heartless. These are people’s jobs at steak.

    I’m not sure what it’s like in the UK, but over in Ireland, my local HMV has been the source of some fairly decent saving for me in the past, and I’ve actually managed to track down some pretty hard to find games in their stores over the years.

    #6 2 years ago
  7. freedoms_stain

    @6, I’m not responsible for keeping the HMV workforce in a job, that’s what their executive management pay themselves obscene amounts of money for.

    We supposedly live in a capitalist world, businesses that can’t compete should fail, that is how it works.

    #7 2 years ago
  8. triggerhappy

    @ Ireland: You ALWAYS have to go the opposite way just to be different, don’t you.

    #8 2 years ago