Sweaty Betty sales fall as competition proves to be fierce
Activewear brand Sweaty Betty dips into the red after reporting a £5.1 million loss in sales for the year ending 1 January 2023.
This loss compares to a profit of almost £14 million the year prior, according to a filing on Sweaty Betty Limited's Companies House.
Turnover fell 8.5% to £167.7 million, while profit decreased to £66 million from £94.5 million. EBITA was down to £130,000 from £17.6 million.
It partially blamed the reorganisation of its clothes-buying operations in North America for its dip in profit. However, sales also fell by almost 9% to £168 million.
The activewear label also pointed to customers cutting back on spending amid the cost-of-living crisis.
Sweaty Betty is best known for its yoga and running leggings, which retail upward of £60. The company, bought by US group Wolverine Worldwide in 2021, has recently undergone a series of changes
In the hope of swinging back into the black, Sweaty Betty hired former Nike Director Melissa Mullen as its Global Brand President in June 2023.
Despite Sweaty Betty's financial challenges, these results aren't reflective of the entirety of the premium activewear category. Alo Yoga's parent company, for example, generated over £785 million ($1 billion) in revenue in 2022, with the business doubling in size in the same year.
