Gear4Music built on its lockdown performance by continuing to trade strongly over the summer.
The musical instrument and equipment pureplay, ranked Top250 in RXUK Top500 research, today released an AGM statement and trading update in which it suggested it was now well clear profitability issues that previously affected it. In 2019 the retailer reported full-year pre-tax losses of £0.6m despite 48% growth in sales during the year. This led to a strategic focus on profitability, extending to its inventory, courier costs and a move towards more targeted marketing, and in 2020 it reported full-year profits of £3.1m, alongside a 2% sales rise. Since then it has benefited from very strong sales during the coronavirus lockdown, and today it predicted that growth would follow through to higher profits.
Today Gear4music chief executive Andrew Wass said: “Following the exceptional period of revenue growth during Q1 FY21, I am pleased to report that trading has remained strong throughout July and August, with the group continuing to generate improved margins alongside proportionally lower marketing costs compared to the same period in the prior year.
“While still relatively early in the current financial year, the board remains confident that results for the full year will be at least in line with our recently upgraded expectations.”
It has previously said that profits would be “well ahead” of expectations.
Gear4music is based in York and has distribution centres and showrooms there and in Sweden and Germany. It delivers to more than 190 countries from its website. It has said it is well placed for the ongoing shift in sales from the high street towards online retailing.