HMV is doing much better abroad

The firm, which also owns Waterstone's, is hoping to buy rival bookstore chain Ottakar's for �96m ($170m).

HMV's latest trading update comes ahead of its annual general meeting and covers the 21 weeks since 1 May.

It said sales had particularly dipped in London following the July attacks, while overseas sales were stronger.

'Stronger'

Like-for-like sales at HMV UK & Ireland were down 9.2%, compared to HMV Canada, up 7.7%, and HMV Asia Pacific, ahead by 6.6%.

At Waterstone's, book sales were down by 6.4%.

"Conditions for high street retailing in the UK have been tough during our financial year to date, and there are few signs of an improvement," said HMV group chairman David Kappler.

"Our offer for Ottakar's will result in a stronger and more efficient book business, which will present a more attractive case for investment in the expansion of the combined business and, therefore, the UK book market."

The deal is subject to regulatory approval.