Gear4Music has lowered its profit expectations for the full year, citing tough market conditions and aggressive competitor discounting. The York-based musical instruments and equipment retailer now expects EBITDA of £10 million for the year ending 31 March, down from the previous forecast of £11.7 million. Profit before tax is projected at £1.6 million—below the £2.8 million market estimate but a notable rise from £0.6 million last year. Revenue is set to reach £146.7 million, falling short of the expected £154.7 million.
The company’s share price dropped 3.6% to 130p in early trading, a sharp decline from 200p six months ago and significantly below its pandemic peak of 1010p.
Executive chair Andrew Wass acknowledged the challenges of weak consumer confidence and price competition, particularly in early 2025. However, he noted improved UK and European sales in late March and suggested that competitive pressures may be easing as struggling retailers exit the market.
Gear4Music continues to invest in own-brand product development, second-hand sales, marketing, and e-commerce improvements. While economic uncertainty remains, the company expects to build on recent momentum and improve financial performance in the coming year.
