Brand Experiences Growth, Marking Increased Revenues and Continued International Development for Gymshark
Gymshark, the billionaire-founded activewear brand, tops £600m in revenue for the first time
In a monumental leap, Gymshark, the activewear brand established by self-made billionaire Ben Francis, has surpassed £600m in revenue. The Solihull-based business recently disclosed sales of a staggering £607.3m in the year to 31 July, 2024, according to newly filed accounts with Companies House.
Over the past year, the company's revenue has significantly augmented, rising from an impressive £556.2m in its preceding 12 months. This marks the 12th consecutive year of sales growth for the brand.
However, despite the impressive sales figure, Gymshark's pre-tax profit has experienced a three-year consecutive decline. The company's pre-tax profit initially plummeted for the first time in the year ending July 2022, falling from £27.8m to £13m. Even in the 12 months to July 2023, it dropped further to £11.8m, as per the latest accounts.
In a statement, the company revealed that it is persistently investing in its well-documented omnichannel expansion strategy. Plans include confirmed stores in London, New York, Dubai, Amsterdam, Manchester, Bicester, and a New York City headquarters to bolster its US business. Moreover, the company aims to maintain its digital technology stack investment to drive its e-commerce business.
Gymshark's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by an impressive 14 percent, reaching £51.7m. The company also reported a 14.1 percent increase in orders, a 13.6 percent rise in units sold, and a 5.9 percent surge in international sales.
The firm's US revenue slightly increased from £250.4m to £251m during the year, while its UK sales soared from £111.7m to £136.4m. European sales, excluding the UK, skyrocketed from £129.4m to £145.7m, and its revenue in the rest of the world went from £64.5m to £74m.
Over the year, the company's headcount increased from 853 to 881.
Gymshark was founded in 2012 by Ben Francis and Lewis Morgan. In 2020, it was valued at over £1bn when US private equity firm General Atlantic acquired a 21% stake.
Ben Francis: "The retail sector is feeling the strain"
CEO Ben Francis commented on the impressive results, stating, "FY24 was another strong year of growth for Gymshark with a double-digit rise in adjusted EBITDA. However, we acknowledge that the retail sector is currently under pressure from economic headwinds. As such, we are intensifying our focus on controlling expenses, ensuring we are best positioned to transition to a fully omnichannel business, and ultimately become a 100-year brand."
Quitting The Members Agency
The latest results come in the wake of news from City AM that Ben Francis had stepped down from his position at the sports talent agency he co-founded, The Members Agency, located in Wolverhampton and focused on sports sponsorship deals. According to new filings with Companies House, Ben Francis is no longer listed as a person with significant control over the business.
This departure follows other notable departures, including former Gymshark chairman Paul Richardson and Noel Mack, the company's chief brand officer. Previously, Gymshark's chief financial officer abruptly left the company after two years in post. In September 2022, Gymshark announced bodybuilder Chris Bumstead as a new shareholder.
- Despite the impressive £600m revenue achieved by Gymshark, the activewear brand founded by Ben Francis, the pre-tax profit has witnessed a three-year consecutive decline.
- The Solihull-based business, Gymshark, has revealed plans to invest in its omnichannel expansion strategy, aiming to open stores in London, New York, Dubai, Amsterdam, Manchester, Bicester, and a New York City headquarters to boost its US business.
- The brand's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by an impressive 14 percent, reaching £51.7m.
- Gymshark's latest results have been announced amid Ben Francis' departure from his position at sports talent agency, The Members Agency, located in Wolverhampton, which he co-founded.
- Over the year, the company's headcount increased from 853 to 881.
- In September 2022, Gymshark announced bodybuilder Chris Bumstead as a new shareholder, marking another significant move in the brand's growth.
