Gear4Music strikes a chord in third quarter

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Gear4Music update

Gear4Music recorded hit all the right notes in its third fiscal quarter, which included the key Christmas trading period, driven by strong international demand.

Total sales at the musical equipment retailer jumped 42 per cent to £34.6 million in the four months to December 31, compared to £24.4 million recorded in the same period a year prior.

The business said this was driven by a growth of more than two thirds in its mainland European and international markets, with sales hitting £15.8 million compared to £9.4 million in the same quarter a year earlier.

Gear4Music’s home UK market still performed comfortably well and was still its biggest revenue driver, raking in sales of £18.8 million in the third quarter – a 25 per cent year-on-year increase on the £15 million recorded previously.

The retailer added that a 38 per spike in active customers and a 3.3 per cent improvement on website conversion also helped its revenue growth, with numbers standing at 450,000 by the end of December.

“We are very pleased with our trading performance over the last four months, with sales growth of 42 per cent building on the 44 per cent achieved in the first half, and trading for the year to date is in line with the board’s expectation,” chief executive Andrew Wass said.

“This has been achieved as we continue to invest in our customer proposition, marketing, people and websites, all with a view to enhancing our long-term growth prospects.”

Wass added: “We are confident that the group will continue to grow rapidly over the medium and longer term, as we continue our mission to become the best musical instrument and equipment retailer in Europe.”

Gear4Music said its Swedish distribution centre now fulfilled over 50 per cent of all its Scandinavian orders, while its German Distribution centre, which became operational less than a year ago, dispatched over 800 orders on its busiest day in December.

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