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Waterstone's sees sales worsen

03.05.07 Philip Jones

The financial performance of book chain Waterstone's has worsened since Christmas, according to a trading statement put out by its parent HMV. But it still managed to deliver marginally better full-year results.

Total sales at the bookshop chain fell by 4.7% in the year ended 28th April, with like-for-like sales down by 4.1%. But in the 16 weeks to 28th April, like-for-like sales dropped by 7.3%, with total sales for the period down by 7.8%.

The statement shows that sales have worsened since the turn of the year. In the nine weeks ended 10th March, like-for-like sales fell by 6.1%, while in the 10 weeks to 6th January they fell by just 2.7%.

The final figures have not yet been reported, but the result does show a small improvement on the previous year, when the chain reported a like-for-like sales decline of 5.8%, with total sales down 4.8% to £418.7m.

HMV revealed that total group sales for the full year fell by 2% at constant exchange rates, including a 3.5% like-for-like decline. But said it was confident that group profits before tax and exceptional costs for the full year would be in line with market expectations. The HMV chain reported a small drop in full-year sales and a slight upturn of 0.4% in sales growth over the 16-week period--though like-for-like sales were still down.

Simon Fox, chief executive, said: "The markets in which the group operates have continued to be extremely tough. However, as we stated on 13th March, our businesses are now planning on the basis of continuing market change, and I am confident that the initiatives we are putting in place to reduce our costs, revitalise our core business and grow our revenues are being pursued at pace and will lead to a turnaround of the group's performance."

Fox said: "New Children's book and stationery departments are now being rolled out in Waterstone's." He added: "A good start has also been made to our cost-saving programme, including the disposal in the calendar year to date of eight Waterstone's stores."

Retail Financial Philip Jones waterstone's Simon Fox HMV

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