Gymshark continues to make progress as revenue and EBITDA rise.

Gymshark Group has filed its accounts for the year to last July — FY24 — and they show it continuing to prosper with revenue rising, although some profit measures were lower as the firm’s growth investments continued and costs rose.

The company, which is the ultimate parent of Gymshark Ltd and Gymshark USA, saw headline revenue growth compared to the prior year with 20% growth internationally and 6% in North America when foreign exchange movements were factored out. 

It was also profitable, although its accounts contained a warning about the general macro economic environment that has continued to create challenges. It has faced rising input costs, for instance, although while raw materials and labour costs have risen other costs such as freight have “significantly normalised” when compared with the two previous financial years.

And its consumers continue to face cost of living pressures, although some of the pressures of recent years have shown signs of easing. The end result is that consumers remain “keen on value for money” in their discretionary spend.

The company also said it spent time in FY24 reviewing its channel expansion strategy in light of the continuing positive performance of its Regent Street, London, Store. As a result, just before the financial year in question ended – in June 2024 – it opened a second permanent retail store in Westfield Stratford. Unlike Regent Street, this new location “represents a new concept for the brand and is set as a core trading venue,” we’re told.

So what does this all mean in terms of numbers? The company saw revenue of £607.3 million, up from £556.2 million in the previous year and its gross profit margin increased to 63% from 60%. Profit before tax dipped to £11.9 million from £13.1 million, but adjusted EBITDA rose to £51.7 million from £45.3 million. Its level of taxation was higher this year at £4.655 million compared to £2.888 million in the previous year and net profit landed at £7.197 million compared to £10.191 million in FY23.

Other important metrics included orders increasing by 14.1%, which actually managed to beat the 13.1% increase in the previous year. It was also a success story for units sold and the 13.6% increase was an even bigger gap compared to FY23’s 8.7% rise. That said conversion fell by 30bps having been flat in 2023.

Overall, the company said 2024 was a successful year and the board was pleased with the performance in the first half especially. It saw a strong performance during the Black Friday and cyber Monday campaign. 

It didn’t say whether it was pleased with the H2  performance. But it did add that the second half of the year saw the launch of its partnership in the UK with Selfridge is in its stores on Oxford Street in London and in the Trafford Centre in Manchester, as well as the expansion of its operations in the Gulf Cooperation Council (GCC) region in partnership with Al Tayer. The group said it’s pleased with the way in which its wholesale partners have “embraced the brand and promoted it to a wider audience”.

The year was one in which it focused on execution, particularly in product, supply chain and the commercial areas of its business, “working to improve the effectiveness and efficiency of its operations”. The proactive measures taken in the previous year corrected its stock levels but total stock at the year end was £110.6 million, a 12% increase on the balance a year earlier. This was a result of it purchasing additional stock around year end to counteract an increase in shipping times due to the Red Sea impact and also ramping up for the Black Friday sale.

The company also said that it has developed a three-year strategic plan in consultation with its key stakeholders and is therefore confident that the business will continue to grow and at an improved level of profitability in FY25.