Gear4music reports strong sales growth in UK and Europe
Online musical instrument retailer Gear4music has reported that sales climbed by 66% to £13.8 million in the first four months of its financial year. There was strong growth in both the UK and Europe.
In the four months to 30 June, European sales rose by 137% to account for 34% of total sales compared to 24% in the same period last year. The company is expecting its first European distribution centre to be operational before Christmas.
Referring to the UK's EU Referendum vote, Gear4music said its long-term confidence in its European business is reflected in its commitment to establish a physical European footprint before the end of the calendar year.
Meanwhile sales in the UK grew by 44% in the period.
Gear4music's chief executive Andrew Wass said: "We are very encouraged by our trading performance during the first four months of the new financial year. We continue to invest the proceeds from our IPO in June 2015 in our ecommerce system, stock and staff to deliver on our strategy of constantly improving our proposition, which helped drive the 66% sales growth in the period.
"Gross margins and administrative expenses over the period were broadly consistent with management's expectations for the current financial year, which puts the group in a good position to deliver full year profit expectations.”
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