Gear4Music Holdings PLC reported that its financial performance surpassed last year’s despite the challenging consumer environment.
The York, England-based online retailer of musical instruments and equipment expects a £1.0 million annual improvement in its pretax profit for the year ended March 31, for a total of £1.6 million.
Earnings before interest, tax, depreciation and amortisation are also expected to see an improvement, increasing 6.4% to £10.0 million.
Total sales reached £146.7 million, which is £2.3 million ahead of the previous year’s total.
However, Gear4music said it believes consensus market expectations for the year forecast revenue of £154.7 million, Ebitda of £11.7 million and profit before tax of £2.8 million.
Gear4Music’s Executive Chair Andrew Wass said: ‘Our performance reflects higher revenues, stable gross margins and a continued focus on cost control.’
Gear4Music saw a dip in its financial performance in February and early March 2025 due to ‘aggressive discounting’ from underperforming UK and European competitors, as well as ongoing weak consumer confidence.
However, both UK and European like-for-like sales improved significantly towards the end of March as a result of several retailers experiencing trading difficulties and subsequently exiting the market.
Gear4Music set out a revised growth strategy in June 2024 that it was investing in new own-brand products, expanding its second-hand offerings, strengthening its marketing capabilities, and enhancing its bespoke e-commerce platform.
Wass added: ‘We believe these strategic initiatives coupled with competitor developments in our market, position us well to maintain our recent positive momentum and drive accelerated commercial and financial performance in FY26 and beyond.’
Gear4Music shares were down 5.3% at 127.85 pence each in London on Wednesday afternoon.
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