Gear4music sales hit by post-Brexit challenges
Gear4music experienced a decline in first half sales and profits following an “exceptionally strong” performance in the same period in the previous year.
Total sales fell by 8% year-on-year to £64.7 million in the six months to 30 September after sales in the EU and the rest of the world declined by 16% due to post-Brexit challenges.
The online retailer said sales in the UK remained robust with revenue remaining flat at £36.7 million.
Meanwhile, gross profit came in at £18.1 million compared to £20.1 million in 2020, but was above the 2019 level of £12.5 million.
Gear4music’s chief executive Andrew Wass (pictured) said: “We are pleased to report that trading during FY22 H1 has been in line with the board’s expectations which, as previously reported, was not expected to meet the same level of trading as during the exceptional FY21 H1 period that was significantly enhanced by Covid lockdowns.”
The retailer said its acquisition of AV Distribution is on track to complete by December and also revealed that new European distribution centres became operational in September 2021 to address the challenges posed by Brexit.
Gear4music is now expecting trading for the full-year to be in-line with consensus market expectations.
Wass added: “Our previously announced new Irish and Spanish distribution centres have now become operational, which following the challenges of Brexit, we expect will positively impact our European sales during FY22 H2 by largely eliminating cross border shipments, and increasing the breadth, strength and capacity of our delivery proposition within Europe.
“Whilst the musical instruments and equipment market is not immune to global supply chain issues and increased shipping costs, we are well placed to continue minimising the impact of this situation, having deliberately and significantly increased on-hand stock from £23.3 million at 30 September 2020, to £30.4 million at 30 September 2021.”
