Gymshark hits record revenue in FY24, yet profit continues to fall

Sportswear retailer Gymshark welcomed a strong revenue growth for FY24, recording an increase of 9 percent per annum which amounted to 607.3 million pounds. While its “active trading stance” and “vibrancy of the brand” were cited to have aided in the uptick, such instances were unable to help profit, which continued on a downward trend.

For the year ended July 31, 2024, reported in filings with the UK’s Companies House, Gymshark recorded a profit before tax of 11.9 million pounds, a decrease on the 13.1 million pounds seen in 2023. This reflected the third consecutive year of declining profits.

It did note, however, that over the period, it had enacted a number of reviews of its end-to-end processes, through which Gymshark said it had identified opportunities to improve efficiency and effectiveness of its operations, some of which have already been implemented.

Further investments into the brand, its positioning for future growth and new technology projects resulted in an increase to its adjusted EBITDA, which rose YoY from 45.3 million pounds to 51.7 million pounds. Its gross profit margin, meanwhile, increased from 60 percent to 63 percent.

Gymshark outlines three-year strategic plan focused on further growth

Gymshark stated that performance across the company in the first half of the year was particularly strong during the Black Friday and Cyber Monday shopping events, while the second half was aided by the launch of a wholesale partnership with Selfridges and the expansion of its operations across the Gulf Cooperation Council region, in partnership with Al Tayer.

In the report, the company’s CEO, Ben Francis, acknowledged that “global events and the macro-economic environment remains unpredictable” and, as such, Gymshark would ensure “careful management and agile responses”. “The board is aware that the consumer is also affected by these trends and considers this as part of the company’s go to market strategy,” the statement added.

With this in mind, Gymshark directors are said to have outlined a three-year strategic plan as they looked towards further growth through both its established e-commerce channel and its retail and wholesale channels. The company is additionally anticipating further increases in revenues for FY25, with profitability also expected to improve. Physical retail and collaborations with wholesale partners were cited to be core focuses for future developments.