HMV Group issues further profits warning

by Kay Murchie

Music, books, DVDs and games retailer, HMV, has watched its shares plummet 20% today after the firm issued another profits warning.
It also revealed it would currently fail to meet the conditions of its loan agreements in April.
The retailer, which also owns Waterstone’s bookshops, in January said it was struggling to meet the terms of its lending agreements.
The company continues to struggle amid tough competition from supermarkets and internet companies, such as Amazon.
The chain recently announced plans to close 60 stores over the next year after the heavy snowfall in December dented sales.
Chief executive Simon Fox said today: “Trading conditions remain tough, reflecting a difficult consumer environment as well as the changing markets in which we operate.
“However, our business is adapting quickly to respond to these external factors, and we are confident that our plans will ensure its long-term sustainable future.”
In January, HMV said credit insurers were reviewing the level of cover they provide on the group.
However, this undoubtedly raises concern among investors after the withdrawal of credit insurance led to the collapse of iconic department store, Woolworths, as well as music and games retailer, Zavvi, back in 2008.
Discuss this in the Finance Markets forums
Story link: HMV Group issues further profits warning
Related financial stories to: HMV Group issues further profits warning:
- HSBC chief takes responsibility for trouble in US division
- B&B issues profit warning, shares suspended
- National Express issues profit warning and announces £350m rights issue
- HSBC reports profits up in 2006
- Mortgage lender warns on profits
- European telecoms decline on Deutsche Telekom profits warning
- FTSE sees small declines after strong trading
- ABI issues lodger warning
- Moneynet issues warning on Lloyds TSB overdraft fees
- Engineering sector lower in London
Next: Chinese manufacturing eases in February »
No Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Tags: competition, HMV, lending agreements, profits warning, sales, shares, struggling
Visited 340 times, 3 so far today