hmv Canada starts 2013 off on right foot with strong results
06 Jun, 2013, 06:00 ET
Audio market share up 4.2% from 2012 and visual market share up 0.6% in the same period
TORONTO, June 6, 2013 /CNW/ - hmv Canada, the country's premiere retail destination for music and entertainment, today announced a promising start to the year in the period from January to May 2013, with results that demonstrate the continued strength of hmv Canada's business.
"Building on the momentum of 2012, we entered 2013 with a renewed strength and excitement for our business which is evident in our results," said Nick Williams, President and CEO, hmv Canada. "We are experiencing an even stronger demand for CDs and DVDs at the start of 2013 than we did during this time in 2012. This, combined with the continuing growth of our new product categories, means we are in great shape for the summer. Despite a softer new release schedule when compared to the same period in 2012, we find ourselves ahead of our forecast and on track to deliver another strong year and maintain our position as Canada's top choice for music and entertainment."
Comparable store sales for the first five months of 2013 have seen a 1% growth while gross margin increased by 2.1% year-over-year. While the overall physical audio and video markets in Canada saw some slight declines due to the softer release schedule, hmv continued to increase its market share in these core categories and reported that new product lines such as apparel and gift and collectibles were up 20% year-over-year.
Williams continued: "In addition to strong sales, we improved our audio and visual market shares by 4.2% and .6%, respectively, over the same period in 2012. Regionally, we saw strong performances in British Columbia, Nova Scotia and Ontario which significantly contributed to these increases. We realize, though, that there is still a lot of work to do. We must continue to broaden our in-store offer in a way that is relevant to Canadians, while expanding the penetration of our online offering, The Vault. We are in a terrific position to provide a combined in-store and online offering and, through this model, we expect to continue delivering strong results in the months ahead."
Later this year, hmv Canada will open its newest location in Fort McMurray, Alberta. This is a market we have been targeting for a number of years," said Harvey Berkley, CFO, hmv Canada. "The HMV location in Grande Prairie has proven immensely successful and we feel that this newest addition in Fort McMurray will help strengthen the brand within the province. Relative to expansion strategies Berkley offers, "The business is moving forward positively and we're going to take advantage of exploring every possible opportunity across the country."
Finally, The International Retail User Group (IRUG) announced hmv Canada Inc. as the winner of the 2013 Retail Innovation Award. This prestigious award was presented at the User Group's 36th annual conference in Anaheim, CA - April 21 -24, 2013. The award recognizes a retail member and their solution provider with an innovative solution that demonstrates a sustainable competitive advantage through the application of a unique business model or software.
About hmv Canada
hmv Canada's first store opened in 1986, from which it has grown to become a Canadian entertainment market leader with 111 stores from Newfoundland to British Columbia, including flagship locations in Toronto, Edmonton, and Montreal. hmv Canada is an innovator in its market, launching in 2009 hmvdigital.ca its digital music store, in 2010, the hmv Pure customer rewards program, which has attracted over 1.2 million paid cardholders, and in 2012 The Vault music streaming service, giving users access to millions of tracks to stream on a personal computer or mobile device. hmv has been named Canadian Music Retailer of the Year for the past 20 years, and has also been recognized as the Canadian Entertainment Network DVD Retailer of the Year. In July 2011, Hilco acquired hmv Canada from the UK's HMV Group plc.
SOURCE: HMV Canada Inc.
For further information:
Share this article