Wednesday, November 25, 2020

‘Exceptional’ trading period for music seller

Total sales have risen dramatically for Gear4music, the York-based online retailer of musical instruments and equipment.

A trading update released this week for the six months to 30 September 2020 show that UK sales rose 48% from £24.8 million to £36.7 million. Europeans and rest of the world sales, meanwhile, rose 36% to £33.5 million.

Moreover, gross profit increased by 60% from £12.5 million in FY20 H1 to £20 million. The company said that its strong trading momentum has “continued into October ahead of our traditional Christmas peak season”.

CEO 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.

“Building on the significant progress made during FY20, our focus on gross margin improvement, proportionally lower marketing spend and tightly controlled overhead costs is delivering tangible results.

“Alongside the exceptional period of sales growth during Q1, the outcome will be financial results for H1 FY21 that are materially ahead of last year.

“Strong growth in sales and gross profits has continued during October, and preparations for what we expect to be a busy peak trading period are well advanced.

“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.”

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