Gymshark more than doubles revenues in 2021
British sportswear company Gymshark has published its accounts for the year ending 31 July 2021, reporting a 68% growth in sales to £437.6 million, up from £260.7 million in 2020.
The company said that the period was affected by the COVID-19 pandemic, which caused a "shift in consumer behaviour, accentuating the attraction of online shopping and promoting trends of wellness and casualisation." It added that the company was "well placed" to benefit from these macro trends.
- Revenues of £437.6 million
- Profits after tax of £48.9 million, up from £24.4 million in 2020
- Gross profit margin of 67%
- Orders increased by 52%
The company said it grew sales in all key territories worldwide with International Sales growing by 49%. The US market contributed the largest share of sales with £179.6 million. Gymshark started selling in the US market in July 2021 and has since launched a dedicated marketing campaign for the market.
The United Kingdom is now Gymshark's second biggest market with sales of £86.5 million, while the Rest of Europe and The Rest of the World contributed £84.4 million and £48.2 million respectively. Another £39 million were generated from Intercompany sales.
This year the Group, which which operates Gymshark Ltd and Gymshark US subsidiaries, said that it would not pay any dividends after it paid £2.1 million in 2020. Gymshark also reduced its charitable donations from £360,000 in 2020 to £163,000 in 2021.
The company's Directors noted that they expected Gymshark's performance to increase in the future year, with revenues, orders and customer numbers all increasing. "This is a result of the company continuing to expand the D2C model, with localised execution, alongside consumer demand for the brand and new, on trend products" the report said.
Gymshark further shared that it expected to open its new flagship location on London Regent's Street in September 2022 and that it was creating 100 new staff roles to run the store.