International growth drives revenues at Gymshark
Gymshark, the fitness community and apparel brand, has published its accounts for the year ending 31 July 2022, with revenues in the year rising 21% to £485 million, led by a 25% growth in US turnover.
Gymshark, which trades to 180 countries worldwide, saw only small sales growth in the UK, rising just under 3% to £89 million. The business was co-founded by entrepreneur Ben Francis in his parents’ garage 2012, has since grown to over 900 employees.
The Birmingham-based company reported that its pre-tax profits fell 39% to £27.8 million, dropping from £45.4 million the previous year. The loss in profits comes as it was forced to slash prices despite a jump in the cost of raw materials and shipping.
Last October, Gymshark went big with its first bricks & mortar store, taking a 18,000 sq ft premium retail unit on London's Regent Street.
The flagship store stayed true to Gymshark's roots, designed to foster a spirit of community among its millennial consumer base with fitness classes, expert advice, and an events space for staging podcasts, panel talks and screenings.
A Gymshark spokesperson commented: “All countries where the company trades were affected by the Covid-19 pandemic and the relaxation of societal restrictions have impacted the consumer and businesses alike... So, yes, there have been challenges, and it would have been tempting to hold on to the money in the bank.
"However, unlike so many, we refused to be swayed by macro-economic conditions and so doubled down on investment, whether in the international markets or in opening our first-ever permanent flagship store on Regent Street, which is now outperforming our forecasts and setting us up for further growth in the UK. Our decision to invest when we did is now paying off globally, as we are seeing double-digit growth in our revenue and trading in line with our group forecast.”
