Gymshark Grows Revenue, Pushes New Products

Gymshark isn’t done innovating.

What’s happening: The British activewear brand posted FY23 results, reporting record-high revenues. But, profits fell for a second year, raising concern about continued growth.

By the numbers:

• Revenue hit £556M, a 15% rise YoY.
• Pre-tax profits fell by 53% to £13.1M.
• Net profit margin declined to 1.8% from 9.5% in 2020.

Of note, founder Ben Francis revealed the retailer had cut its stock balance by £22M and reduced staff by 170 to stabilise its footing.

Threads of Hope

But, encouraged by current sales tracking 20% higher YoY, he expressed confidence in the brand’s outlook.

In an effort to increase revenues profitably and sustainably, the company sees premium apparel and retail partnerships as key growth drivers.

Coming this year, Everywear, a luxe athleisure collection, will launch exclusively in UK department store Selfridges, marking its first wholesale partnership.

Strength in numbers. Cultivating IRL connections, the brand will launch its second physical store in the capital’s Westfield Stratford this summer following the acclaim of its community-oriented outpost in London.

Internationally, a 12-month pop-up store in New York, the continuation of its experiential event series Lift and ecommerce launch in Dubai will bolster its global presence.

Looking ahead: Going back to its roots and leading with a community-first approach, Gymshark has to fine-tune operations — improving efficiency as it scales globally.