Gear4music sees FY profit ahead of previous expectations

6th Jan 2017 07:58

(ShareCast News) - Online instruments retailer Gear4music said on Friday that it expects full-year profit to be above its previous estimates as it posted growth in sales for the four months from 1 September to 31 December 2016.Total sales in the period were up 55% to £24.4m from the year before, with sales in the UK up 29% to £15.02m. Sales in Europe and Rest of the World were 129% higher at £9.4m.Own-brand sales grew 63%, supported by strong gross margins, while the number of active customers was up 53% to 324,000 at 31 December, compared with the same time a year ago.Chief executive officer Andrew Wass said: "We were particularly pleased with our own-brand sales performance during the period, which was driven by improving conversion rates and investment in additional stock. As a result of this and a controlled overhead cost base, the board is now confident that Gear4music is well placed to deliver profits for the full year that will be ahead of the increased expectations signalled at the half year stage."As the business continues its programme of investment into distribution centres, websites, systems, products and people, we remain confident of delivering on our growth strategy."