Gymshark profits slip despite surge in sales in another ‘strong’ year of growth

For the full year to July 31, 2024, Gymshark reported a 14% rise in adjusted EBITDA from £45.3m in 2023 to £51.7m for the year.

Gymshark’s profit before tax however, fell from £13.1m to £11.9m during the year, which it said was due to its ongoing “strategic investment” into its omnichannel expansion.

Revenue at the gym specialist surged for the 12th consecutive year to hit £607.3m, up from £556.2m last year and breaking the £600m mark for the first time.

Gymshark hailed its “strong performance” over both Black Friday and Cyber Monday and also noted its partnership in the UK with Selfridges during the year.

Gymshark said it saw a 14.1% increase in orders during the year, with units sold also up by 13.6%.

The retailer also noted a 5.9% increase in international sales as the brand continues to expand following new openings in the likes of New York, Dubai and Amsterdam.

During the year, Gymshark also relocated its US head officer from Denver, Colorado to New York.

Looking ahead, Gymshark noted the “ever-changing and highly volatile” economic environment and said that it has a close eye on “controlling costs to ensure the brand’s long-term health”.

The sports giant said that while consumers remain “subject to inflation and cost-of-living pressures” that some of those pressures are “showing signs of easing”.

Gymshark founder and chief executive Ben Francis said: “Despite well-reported economic turbulence, FY24 represented another strong year of growth for Gymshark. We broke the £600m barrier for the first time, and Adjusted EBITDA rose by double-digit numbers.

“Looking to the future, it’s no secret that the retail sector is feeling the strain from macro-economic pressures. As such, we are ensuring we have a heightened focus on controlling our expenditure, so we are best set up to become a fully omnichannel business and realise our dream of becoming a 100-year brand continuing to make the best gym products for our consumers.”