// Profits rise at Gymshark as founder Ben Francis’ wealth hits £900m
// Sales rose sharply at the retailer, from £260.7m in 2020 to almost £402m last year – a rise of 54%
Sportswear giant Gymshark has posted a hike in profits in its last financial year.
The business, founded by entrepreneur Ben Francis, posted a £45.4million pre-tax profit for the year to July 2021, compared to £30.4 million in 2020.
The Gen Z-focused brand saw sales surge 54% to £401.9 million, versus £260.7 million in 2020.
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However, the accounts confirmed that Gymshark will make 120 people redundant by July, following a restructuring programme.
Despite this, the online retailer says it will create more than 100 new roles, adding: “The business will seek to offer as many of these new roles to its current staff where it is appropriate to do so.”
Francis founded Gymshark in 2012 and owns a 70% stake in the firm. In August 2020, he sold a 21% stake to private equity firm General Atlantic.
Francis also rose on The Sunday Times Rich List published this weekend, now ranking at 191, up from 226 last year.
Gymshark is set to open its highly anticipated flagship store at 165 Regent Street, with a lease liability of around £21.9m. Its first bricks and mortar store will boast 18,000 square feet.
“We are nothing without our community, so we wanted to create something that allows us to thank them and get closer to them. This store is not going to be like anything you have seen before,” Francis said when news of the store was first announced.