Gymshark breaks £600m revenue barrier as global expansion accelerates
Gymshark has surpassed £600m in revenue for the first time, marking its 12th consecutive year of sales growth.
However, the Solihull-based activewear giant reported a drop in pre-tax profits for the third year in a row, despite the strong top-line performance.
For the year ending 31 July 2024, Gymshark posted a pre-tax profit of £11.9m, down from £13.1m the previous year. It comes following a major investment in the brand’s global expansion, including new store openings in the UK, the US, and the UAE.
As part of its US growth strategy, the company relocated its American headquarters from Denver to New York, leasing a new office in Manhattan. This move also included the launch of a flagship store in New York – Gymshark’s second permanent retail location outside the UK.
In the UK, the brand continued its brick-and-mortar expansion. The new Bond Street store became Gymshark’s fourth physical retail site, following the opening of its flagship on London’s Regent Street in October 2022, its Westfield Stratford City store earlier this year, and its first international location in the Dubai Mall.
In its latest financial report, Gymshark said it is still experiencing ongoing challenges from rising input costs, including raw materials and labour. However, it noted that freight costs have “significantly normalised” compared to the previous two financial years.
To support its growth ambitions, the company secured a new £120m revolving credit facility in May 2024, led by HSBC and a consortium of banks. The deal also includes an accordion option for an additional £60m over a five-year term.
Gymshark said it is continuing to “strategically invest in its well-documented omnichannel expansion, with stores confirmed in London, New York, Dubai, Amsterdam, Manchester, Bicester, and a New York City headquarters to drive its US business alongside continued investment into the digital technology stack which underpins Gymshark’s e-commerce business”.
CEO Ben Francis said: “Despite well-reported economic turbulence, FY24 represented another strong year of growth for Gymshark.
“We broke the £600m barrier for the first time, and adjusted EBITDA rose by double-digit numbers.
“Looking to the future, it’s no secret that the retail sector is feeling the strain from macro-economic pressures.
“As such, we are ensuring we have a heightened focus on controlling our expenditure, so we are best set up to become a fully omnichannel business and realise our dream of becoming a 100-year brand continuing to make the best gym products for our consumers.”
