London Retail Chain's Stock Downgraded6 Jun, 2005 By: Jessica Wolf
International wealth-management firm Baird has downgraded stock for London-based audio/video retail chain HMV from “outperform” to “neutral.” The firm attributes the downgrade to the belief that the DVD market for the region has gone flat-to-negative. The firm also forecasts the chain in June will take a pre-tax profit hit from £138.5 million ($252.6 million U.S.) to £130 million ($237 million) for the month. Baird estimates that DVD makes up 40 percent of the chain's sales mix. The firm also cut its June pre-tax profit forecasts for another United Kingdom chain, Woolworths, from £79.5 million ($145 million U.S.) to $£62 million ($113 million U.S.) based on concerns of a stalled DVD market.