UK's Gear4music posts higher FY26 revenue, helped by competitors' exit

Gear4music (HOLDINGS)

Today 07:12

Overview
UK online musical instruments retailer's FY26 revenue rose 30% yr/yr
Gross margin improved to 28.4% from 27.0% on better pricing and product mix

Outlook
Company expects FY27 revenue of £200.2 mln, EBITDA of £16.0 mln, PBT of £6.0 mln
Double-digit percentage revenue growth reported year-to-date in FY27
Company says FY27 trading to date is in line with board expectations

Result Drivers
MARKET SHARE GAINS - Improved market conditions and exit of competitors in the UK enabled Gear4music to increase market share and drive revenue growth
COST DISCIPLINE - Administrative expenses rose 17%, well below the 30% increase in revenue, supporting profitability

Company press release: ID:nRSW2903Ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Gross Margin
 
28.40%
 
FY EBITDA
 
GBP 18.40 mln
 
FY Gross Profit
 
GBP 54.20 mln
 
FY Pretax Profit
 
GBP 10.30 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Gear4music (Holdings) PLC is GBp415.00, about 61.2% above its June 22 closing price of GBp257.50
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)