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Gear4Music shares take hit despite strong sales increase
Shares in online musical instrument and equipment seller Gear4music fell sharply on Friday afternoon despite a 42% increase in sales to £34.5m in the four months to end December, 2017.
Customer numbers leaped 38% to 450,000, the company said in a trading update.
The lion's share of the growth came from abroad, with European and rest of the world sales up 69% to £15.8 million over the period.
Chief executive Andrew Wass said trading for the year to date was in line with the board's expectations.
"Growth in our more established UK market has remained strong alongside very strong growth in our international markets which are being further driven by an improved delivery proposition as we continue to scale up our European hubs," he said.
"Our Swedish distribution centre now fulfils over 50% of all our Scandinavian orders, and our German Distribution centre, which became operational just 10 months ago, dispatched over 800 orders on its busiest day in December."
"We are confident that the Group will continue to grow rapidly over the medium and longer term, as we continue our mission to become the best musical instrument and equipment retailer in Europe."
The shares were down 6% to 724.4 pence at 1530 GMT.