Gear4Music is sounding good

'‹M'‹usical instruments retailer Gear4Music'‹ reported an impressive 55 per cent increase in like-for-like sales in the run up to Christmas following strong growth in the UK and Europe.
By The Newsroom
Published 6th Jan 2017, 10:13 BST
Updated 9th Jan 2017, 13:02 BST
Andrew Wass, CEO of Gear4Music, plays piano accompanied by colleaguesAndrew Wass, CEO of Gear4Music, plays piano accompanied by colleagues
Andrew Wass, CEO of Gear4Music, plays piano accompanied by colleagues

The ​York-based firm, which reported a 129 per cent increase in overseas sales, said full year profits will be ahead of expectations. ​The firm, which is the largest UK online retailer of music​al​ instruments and music equipment, ​said one of its best sellers over Christmas was the Modal CRAFTsynth Monophonic Synthesizer Kit​. The group said the synthesizer costs £79.99 and can be assembled in less than 10 minutes.​

In the four months to December 31, Gear4Music reported a 63 per cent increase in own-brand sales.

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Active ​c​ustomer numbers ​rose 53​ per cent​ to 324,000 ​by the end of 2016, compared with the end of 2015.

Analyst ​George Mensah​ at Shore Capital said: "​In our view, Gear4music is a profitable growth business benefiting not only from a channel shift in its respective market but also the ongoing investment to support a diversified growth strategy.

​"​We believe the market is likely respond favourably to today’s trading statement and expect the share price to trend upwards.​"​

​The group's total sales rose 55 per cent to £24m in the four months to December 31.​

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Gear4music’s C​EO Andrew Wass said:​ ​“We continued to deliver a strong sales performance during the last four months including the festive period, and with year to date growth of 63​ per cent​, the ​g​roup remains on​ ​track to deliver annual revenues in​ ​line with the ​b​oard’s expectations.

“We were particularly pleased with our ​o​wn-brand sales performance during the period, which was driven by improving conversion rates and investment in additional stock.

​"​As a result of this and a controlled overhead cost base, the ​b​oard is now confident that Gear4music is well placed to deliver profits for the full year that will be ahead of the increased expectations signalled at the half year stage.​"

He said that as the business continues to invest in distribution centres, websites, systems, products and people, ​the group is​ confident of delivering on ​its​ growth strategy.

T​he firm's ​Swedish distribution centre ​is​now active​ and the​ German distribution centre ​is ​on​ ​track to be operational by the end of the financial year​.​

Related topics:EuropeYork