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Gear4music sees strong revenue growth thanks to rocketing international sales

Laura  Barnes
Gear4music sees strong revenue growth thanks to rocketing international sales

Retailer Gear4music has released its trading update for the six months to 31 August 2017, reporting that its total half-year sales increased by 44%.

As the largest UK-based online retailer of musical instrument, Gear4music’s total sales increased from £21.6 million in the six months to 31st August 2016 to £31.2 million the year after.

Along with a 30% increase in UK sales, the retailer revealed that this growth was fuelled by a 70% increase in international sales, which grew from £7.8 million to £13.3 million.

Gear4music also saw its active customer numbers increase by 44% to 390,000.
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“We are very pleased with our trading performance over the last six months, with 44% revenue growth being ahead of our expectation for H1 as indicated at the start of the year, and equates to two-year growth of 150%,” said Andrew Wass, CEO of Gear4music.

“Revenue growth in our core UK market continues to be strong, alongside very strong growth in our international markets, driven by our new distribution centres improving our customer proposition resulting in market share gains across Northern Europe.”

Gear4music has also been investing heavily throughout 2017, with new distribution centres in Sweden and Germany. MI Pro also reported last week that the retailer has bought a new 50,000 sq ft head office in York for £5.3 million.

The significant investment in the offices will provide improved facilities for Gear4music’s existing 210 staff as well as room to further expand its workforce.

“A period of investment into our proposition and infrastructure in H1 has increased our operational costs and restricted margins in the short term. Encouragingly, revenue growth over the last six weeks supports our expectation that, as previously stated, revenue and profitability is likely to be more H2 weighted in FY18 than in FY17,” said Wass.

“We remain focused on delivering long-term sustainable growth through investment in our people, products, websites and operational capabilities, and raising £4.2m growth capital in May 2017 has enabled us to start accelerating investment in these key areas. The Group continues to trade in line with our expectations and is well prepared for a busy seasonal period.”

Tags: Retail , gear4music , trading report , revenue

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