British music and books retailer HMV has said it is confident profits for the full year will be in line with revised analyst expectations despite an extremely tough market.
The group, which issued a profit warning in March due to competition from supermarkets and the internet, said it had struggled during recent weekends as hot weather kept shoppers away.
But HMV's chief executive Simon Fox said he was hopeful new releases such as the CD by the Arctic Monkeys and the last Harry Potter book would help sales.
HMV, which runs Waterstone's bookstores as well as music shops under its own name, is battling cut-price competition from supermarkets and online retailers as well as a decline in physical music markets as downloading takes hold.
It announced the details of its three-year turnaround plan in March which will focus on 'interactive' HMV stores. The group said the market was forecasting a profit for the year to the end of April at about £48m.
Total group sales for the full year fell by 2%, including a 3.5% decline in stores open for more than a year. Group sales on a like-for-like basis fell 3.9% in the last 16 weeks to April 28, pulled down by HMV stores in the UK and Ireland which recorded a 2% fall in that period and Waterstone's which fell 7.3%.
