Gear4music today said business had continued to be strong into October as customers turn to music in difficult times, and it flagged fast growth in sales and profits over the first half of its financial year.
The online retailer of musical instruments and equipment now expects to move from here into the peak Christmas season but is also “mindful” of future uncertainties around Brexit and Covid-19.
It said in a half-year trading update that group sales would come in at £70.2m in the six months to September 30, 42% up on the same time last year when it reported sales of £49.4m. UK sales of £36.7m will be 48% up on last time, while international sales of £33.5m will be 36% ahead.
Gear4music chief executive Andrew Wass said: “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.”
Looking ahead, he said full-year results were expected to be ahead of previous expectations.
Gear4Music, a Top250 retailer in RXUK Top500 research, is based in York and has showrooms and distribution centres there and in Sweden and Germany. It sells online for delivery to more than 190 countries.