Gear4Music Lowers Fiscal Year Guidance on Supply-Chain Issues; Shares Fall
16 November 2021 - 08:17PM
Dow Jones News
By Michael Susin
Shares of Gear4Music (Holdings) PLC fell nearly 21% in early
trade Tuesday after the company lowered its guidance for fiscal
2022, blaming supply-chain issues, and reported a fall in
first-half pretax profit.
The U.K.-based online retailer of musical instruments and music
equipment said it is performing below full-year consensus market
expectations because of the persistence of Brexit-related
supply-chain issues and slower-than-expected European sales for the
third quarter.
The company said it now expects full-year earnings before
interest, taxes, depreciation and amortization to be not less than
12 million pounds ($16.1 million), compared with GBP18.9 million
the year before. The company last month had said it was in line
with guidance for Ebitda of GBP14 million.
Gear4Music made a pretax profit of GBP1.9 million for the six
months ended Sept. 30, compared with GBP5.8 million. Revenue fell
to GBP64.7 million from GBP70.2 million, it said.
Ebitda fell to GBP4.8 million from GBP8.5 million, it said.
Shares at 0822 GMT were down 165.0 pence at 635.0 pence
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
November 16, 2021 04:02 ET (09:02 GMT)
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