// Gear4music notes “significant increase in demand” during coronavirus lockdown
// Retailer saw positive sales trends for first months of 2021 financial year
Online musical instrument specialist Gear4music has reported a boost in sales during lockdown as customers look for ways to stay busy whilst stuck at home.
Revenue rose 2 per cent to £120.3 million in the full year to March 31, during which time the retailer also grew its customer base by 11 per cent, to 807,000.
READ MORE: Gear4music sales smash £120m amid Covid-19
Gross profits were 16 per cent higher for the year, coming in at £31.2 million.
Operating profits improved to £4 million compared with a small loss last year.
Gear4music said it had experienced little disruption in its order processing and fulfilment operations throughout the lockdown period, despite an increase in demands.
“With an increasing number of people throughout the Covid-19 lockdown recognising the benefits that playing, creating and recording music can bring, we have seen a significant increase in demand during this exceptional period,” said chief executive Andrew Wass.
“Positive sales trends with improved margins have continued into June, and we have also incurred lower marketing costs than we would typically expect,” Wass added.
Looking ahead as lockdown restrictions begin to lift, Wass said the board remained optimistic for the 2021 financial year.
“The improvements we have made during FY20, and the exceptionally strong trading we have experienced during the lockdown period, mean we are financially stronger and better placed than ever to make the most of future growth opportunities within our market.
“Therefore, whilst still early in the current financial year, the Board is confident of continued financial improvements during FY21 and look forward to the year ahead with optimism,” said Wass.
Shares rose 23 per cent on Tuesday after Gear4music released its full-year results, up to a high of 395p.