Gear4music Holdings PLC (LON:G4M) hit the right notes for investors as both margins and sales rose over Christmas.
The online guitar and musical instrument retailer saw total revenues rise 7% to £30.4mln in the two months to 31 December.
Gross margin improved by 260 basis points to 26.5%, which raised gross profit by 18% to £8mln.
Analysts at Peel Hunt said this update “is true to the stated strategy of not pursuing sales growth at any cost”.
The broker added the profit and margin show that “operationally the business is back on track”, despite the sales growth seems “a little uninspiring”.
UK sales rose 6% to £15.9mln with Europe and rest of the world up 7% to £14.5mln compared to the same period in 2018.
In 2018, G4M swung to a loss after being held back as its distribution centre in York reached maximum capacity during the peak trading period between Black Friday and Christmas.
The AIM-listed firm addressed its issues by focusing on higher-margin products as well as improving its warehousing and infrastructure facilities.
Shares jumped 14% to 276p on Thursday morning.