Gear4music raises profit outlook after sales surge 80%

Gear4music lockdown covid-19
The musical retailer now expects full-year profits to be ahead of previous expectations
// Gear4music sales rise over 60% in the 3 months to June 30
// The retailer said the increase was thanks to Brits having more time to play instruments while stuck at home

Gear4music has recorded a total sales increase of 68 per cent to £37.3 million in the three months to June 30 as lockdown prompted Brits to play instruments while staying home.

Sales in the UK increased by a colossal 80 per cent to £21.2 million while international sales climbed by 55 per cent to £16.1 million.

The musical retailer said it now expected full-year profits to be ahead of previous expectations.

READ MORE: Gear4music reports back on “exceptionally strong trading” during lockdown

“As previously reported, the Covid-19 lockdown created an exceptionally strong period of trading for the group during April and May 2020,” Gear4music chief executive Andrew Wass said.

“The strong trading momentum has continued into July, and we continue to achieve higher gross margins and with a lower marketing cost than we would typically expect, alongside a controlled cost base.”

Last month, Gear4music reported a boost in sales during lockdown as customers were looking for ways to stay busy whilst at home.

Revenue rose two 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.

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.

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