Gear4music, a leading online musical instrument retailer, has shown signs of recovery with its new growth strategy.
- The company has achieved a year-on-year revenue increase of one per cent for the second quarter.
- Gear4music returned to profitability with a pretax profit of £0.6m in the year to March 2024.
- The company’s second-hand sales platform gained significant traction, expected to continue its growth.
- Marketing adjustments have stabilised, supporting a positive outlook for the peak trading season.
Gear4music, a prominent name in online musical instrument retailing, reported a promising return to revenue growth as its revised corporate strategy began to deliver positive results. The York-based company achieved a one per cent increase in revenue year-on-year for its second quarter, indicating the initial success of the newly implemented strategy.
Earlier in the year, the company revealed a strategy focused on achieving profitability by 2024, following which Gear4music managed to turn a pretax profit of £0.6m for the financial year ending in March 2024. This marks a substantial turnaround from the previous year’s loss of £0.4m, showcasing effective strategic shifts at the firm.
Despite projecting a pretax loss of £1.2m for the first half of the 2025 financial year, this figure reflects a £0.7m improvement compared to the same period in the previous year. Gear4music attributed part of this performance to the “significant traction” observed in its second-hand sales platform, a positive trend anticipated to persist through the remainder of the year.
The firm also tackled initial hurdles with a new AI-based marketing system introduced in the first half, which temporarily increased marketing expenditures and affected the product sales mix. Executive Chair Andrew Wass confirmed that these issues have now been resolved, allowing marketing investments to stabilise as the company moves into its crucial peak trading season.
With its outlook aligned with market expectations and a stock price increase of two per cent in initial trading, Gear4music has displayed resilience and adaptability in a challenging market environment. Wass expressed confidence that the company is well-positioned to capitalise on upcoming opportunities.
Gear4music’s strategic adjustments have positioned the company on a path of renewed growth and profitability.
