Gymshark puts almost 300 jobs at risk after record £600m sales
Gymshark has put almost 300 jobs on the line despite hitting record revenues of over £600m for the first time.
The Solihull-headquartered activewear brand, co-founded by billionaire entrepreneur Ben Francis, has entered into a consultation period with 296 employees, nearly a third of its workforce.
The move was first reported by Drapers and comes on the heels of Gymshark’s latest financial results, which revealed revenue rose to £607.3m for the year ending 31 July 2024, up from £556.2m the previous year.
It marks the 12th straight year of sales growth for the business, but that top-line success contrasts with falling profits.
However, pre-tax profit declined for the third consecutive year, dropping to £11.8m from £13m in 2023, down from £27.8m in 2022. 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.
Gymshark’s headcount rose from 853 to 881 over the year, though that figure is now set to fall sharply as the firm looks to restructure operations amid the financial pressures.
To support its expansion and operations, the company secured a new £120m revolving credit facility in May 2024, led by HSBC and a consortium of banks. The agreement includes an additional £60m accordion option over a five-year term, offering further financial flexibility.
Gymshark was founded in 2012 by Ben Francis and Lewis Morgan. It reached unicorn status in 2020 after US private equity firm General Atlantic acquired a 21% stake, valuing the company at more than £1bn.
Gymshark has been approached for a comment.
