HMV reports tougher picture in UK

Music retail chain and Waterstone’s owner HMV signalled slowing sales today despite narrowing first-half losses.

The company reported like-for-like sales of 5% across the group in the 26 weeks to October 27- slower than the 6% growth seen in the first 18 weeks.

HMV, which has been hit by online music downloading and competition from supermarkets, reduced underlying operating losses 13% to £24.8m (€34.5m).

It has sought to recover through moves such as cost-cutting and an overhaul of its stores. It said early customer reaction had been “encouraging”