Music retailer HMV said today it was on track to meet financial targets after a better-than-expected performance over Christmas.
Group like-for-like sales were up 4.6 per cent and profit margins were in line with last year for the five weeks to January 4th, beating most analysts' forecasts.
Chief executive Mr Alan Giles said the group was heading into more uncertain economic conditions but that he would be surprised to see a sharp slowdown in consumer spending.
The group, which owns the Waterstone's book chain, makes about 90 per cent of its profits in the second half, so attention focused on Christmas trade, key to its full-year performance.
HMV has succeeded in taking most of the fast-growing DVD market, where sales were up 80 per cent year on year and now account for 18 per cent of group sales.
The best-selling titles were the films Lord of the Rings, Minority Reportand the first series of award-winning television programme The Office.