Gymshark posted its “biggest revenue number ever” in 2023 “underpinned by the relevance and quality of our product”, as EBITDA rose in line with sales growth.
Sales grew 15% from 2022 to £556m which the retailer said was “underpinned by the relevance and quality of our product” and “the resonance of our brand”.
Despite surging sales, the Solihull-headquartered activewear giant’s pre-tax profits fell by more than half to £13m for the 12 months to July 31, down from £27.8m.
However, the company’s EBITDA, excluding exceptional costs, rose from £39.9m to £45.3m. Gymshark said it focuses more on that measure “due to its proxy for underlying trading performance”.
The retailer said: “The overall strategy of the group remains to continue increasing revenues in a profitable and sustainable manner and to create and develop desirable products to its growing consumer base.”
Speaking in a video clip following the results, founder and CEO Ben Francis revealed the business was launching its first wholesale partnership with Selfridges, which would see it launch its “highest quality athleisure range yet” in the store, called “Everywear”.
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The retailer also revealed it would be open a 12-month pop-up store in the US, New York, as well as expanding into Dubai in the spring.
Francis claimed 2024 was going to be “Gymshark’s biggest ever year” following the success of 2023 but admitted its fast-growth days are probably long gone after a challenging year that saw it reduce its workforce for the first time.
The business reduced its administration staff by 170 people, including 80 as part of a major retrenchment from North America, and shuttered offices in Hong Kong and Mauritius.
Gymshark’s directors said they “anticipate that the previous growth trajectory that the group experienced in different times will not continue in the same way”.
However the retailer stressed it is “confident that it can continue to grow its business meaningfully whilst improving profitability and has clear plans in place to deliver this”.
The news comes after Gymshark recently revealed it would launch a second permanent store in London’s Westfield Stratford, due to open in the summer.
The sportswear giant will move into a 7,000 sq ft unit in Westfield Stratford City, which it said will create more than 75 jobs.
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