HMW reports 18% rise in profits

Retailer HMV today said its “three pillar” strategy of new products, live music and reviving the Waterstone’s book chain was showing early signs of success after an 18% rise in profits.

HMV stores are now pushing into fashion, mobile phones and Blu-ray discs, while its swoop for festivals and gig venue owner MAMA Group has cemented its position in the fast-growing live market.

The firm has also overhauled Waterstone’s after tackling supply chain problems, refocusing stores on local customer demand and selling almost one million e-books from its website so far.

The music and games firm posted pre-tax profits of £74.2m (€91.3m) for the year to April 24, up from £63m (€77.55m) previously, although current trading has suffered slightly due to the World Cup.

Chief executive Simon Fox said the retailer’s three-pronged approach was on track so far.

“We are no longer a one-dimensional retailer facing rapidly changing product markets,” he said.