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Gear4music has revealed its total sales fell 8% year-on-year to £64.7mn in the six months to 30 September due to EU sales falling 16% after “post-brexit challenges”.
According to Gear4music, UK sales remain “robust” at £36.7mn, the same as the year previous.
Meanwhile, the brand revealed gross profit fell down 0.6% from 2020 with a current gross profit of £18.1mn compared to £20.1mn for the previous year.
New EU distribution centres will become operational to discuss post-Brexit challenges.
Andrew Wass, Gear4music’s CEO, said: “We are pleased to report that trading during FY22 H1 has been in line with the board’s expectations which, as previously reported, was not expected to meet the same level of trading as during the exceptional FY21 H1 period that was significantly enhanced by COVID lockdowns.
“Our previously announced new Irish and Spanish distribution centres have now become
operational, which following the challenges of Brexit, we expect will positively impact our
European sales during FY22 H2 by largely eliminating cross border shipments, and increasing the breadth, strength and capacity of our delivery proposition within Europe.”
He added: “Whilst the musical instruments and equipment market is not immune to global supply chain issues and increased shipping costs, we are well placed to continue minimising the impact of this situation, having deliberately and significantly increased on-hand stock from £23.3m at 30 September 2020, to £30.4m at 30 September 2021.”
