Gear4music hails strong first half performance
Gear4music has said its full year results are likely to be ahead of market expectations after it experienced strong sales growth in its first and second quarters.
The online musical instrument retailer saw its total sales climb by 42% to £70.2 million in the six months to 30 September after sales in the UK rose by 48%. There was also a big uplift in international sales which increased by 36%.
Meanwhile gross profit climbed by 60% to £20 million.
The company said the strong sales growth has continued throughout October so it is now preparing for a busy Christmas trading period.
Gear4music’s chief executive Andrew Wass said: “I am pleased to report that following an exceptional trading period in Q1 FY21, these strong trading patterns have continued throughout Q2 resulting in revenue growth of 42% for the first half. Our customers are continuing to appreciate the benefits that playing and creating music can bring during these difficult times, as well as the continued convenience of ordering our products online.”
Gear4 Music said its business has been helped by a focus on gross margin improvement, proportionally lower marketing spend and tightly controlled overhead costs in the period.
Looking ahead, Wass added: “We are mindful of the uncertainties posed by Brexit and Covid-19, but are confident in the actions we are taking and the ability and commitment of our amazing staff, to ensure that the business is well positioned to overcome any potential short-term challenges. As such, the board is confident that results for the full financial year will be ahead of previous consensus market expectations.”
Gear4music will report its interim results for the six months ending 30 September on 17 November.
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