Gear4music H1 sales grow amid Covid-19 lockdowns

(Sharecast News) - Musical instruments retailer Gear4music posted a marked increase in first-half sales amid the Covid-19 pandemic on Thursday.
Gear4music said total sales grew 42% year-on-year to £70.2m, with UK sales increasing 48% to £36.7m.

The AIM-listed firm also reported a 330 basis point improvement in its gross margin to 28.5%, while gross profits grew 60% to £20.0m.

Gear4music highlighted that the strong trading momentum seen throughout the first half had continued into October, ahead of its traditional Christmas peak season.

Chief executive Andrew Wass said: "Strong growth in sales and gross profits has continued during October, and preparations for what we expect to be a busy peak trading period are well advanced.

"We are mindful of the uncertainties posed by Brexit and Covid-19, but are confident in the actions we are taking and the ability and commitment of our amazing staff, to ensure that the business is well-positioned to overcome any potential short-term challenges."

As of 1130 BST, Gear4music shares were up 2.90% at 710.0p.