Gear4music Holdings PLC (LON:G4M) has fulfilled the strong expectations of its four-month Christmas trading period. Revenue growth of 42% is consistent with H1 and is in line with expectations, both in the UK and faster growing international markets. This means that the online model continues to take share, achieving growth far ahead of consumer fundamentals and building on its market-leading position. We retain our forecast and reiterate our valuation stance, which sees upside based on the rate of development of international markets.
Pre-Christmas trading on expectation
G4M reports 42% y-o-y growth in total sales for the four months from September to December, its important pre-Christmas sales period. That is reassuringly close to the 44% growth in the first half, with trading in line with expectations. Growth for each of the geographies was also close to H1 levels. The UK (25% vs 30%) continued to provide substantial sales growth, and international sales (69% vs 70%) are powering ahead based on increased capacity and localised delivery options provided by the Swedish and German hubs. Active customer numbers were 38% up at 450,000, and are already 15% higher than at the half year. Website conversion, which is characteristically strong in this period, was up from 3.0% a year ago to 3.3%.
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