9 September 2010 – Interim Management Statement
Having risen nicely since our recent tip, shares in HMV are down today on the back of the interim management statement that the group has issued. This covers the 19 week period to 4 September and has revealed a drop in sales at all parts of the group’s business with much of the fall blamed on the disruption of the World Cup. As we mentioned in our recommendation though, this was largely expected though and so we are a little surprised by the market’s reaction to the news. However, what will be key for the group will be the Christmas trading period and the group says its plans for this are in good shape. We continue to rate the shares as a BUY.