U.K. Activewear brand Gymshark continues to focus on growth, according to government filings detailing its business for the fiscal year 2023, which ended July 31, 2023.

Sales grew 15.0 percent to £556.2 million for the fiscal year, which led to pronouncements of “biggest revenue number ever,” which Gymshark said was “underpinned by the relevance and quality of our product” and fed by “the resonance of our brand.” The company had revenue of £484.4 million in fiscal 2022.

“Overall, 2023 was a successful year with net revenue up 15 percent per annum despite tough economic conditions and declining consumer confidence,” the company noted in its filing. “Our progress was underpinned by the relevance and quality of our product to consumers and the resonance of our brand with the conditioning community and improvements to the efficiency and effectiveness of our operations.”

Gymshark saw profits decline for the second consecutive year following its first decline in the prior fiscal year. The company posted pre-tax profits of £13 million for the 2023 fiscal year, down from £27 million generated in the 2022 fiscal year. Still, the company’s Adjusted EBITDA, which more companies are reporting as a key performance indicator, excluded extraordinary expenses and divested businesses, in addition to the traditional exclusion of interest, taxes, depreciation, and appreciation lines, increased £5.4 million year-over-year to £45.3 million in the fiscal year.

Efforts in its Wholesale and Retail business segments paid off in fiscal 2023 as follows:

  • Direct-to-consumer (DTC) sales increased 11.5 percent for the fiscal year to £536.4 million, compared to £481.2 million in the prior year.
  • Wholesale revenue grew to £7.7 million for the year on expansion efforts in the segment, compared to £1.4 million.
  • Retail sales were £11.9 million for the year, compared to £1.7 million in the prior year.

Sales in the U.S. were the laggard for the year, but the region still managed growth of nearly 10 percent.

  • The U.S. region, which boasts the largest regional sales volume, grew 9.7 percent year-over-year to £250.4 million, compared to £228.3 million in fiscal 2022;
  • Europe revenues increased 16.1 percent year-over-year from £111.5 million in fiscal 2022 to £129.4 million in fiscal 2023;
  • U.K. sales increased 25.6 percent to £111.7 million in fiscal 2023, compared to £88.9 million in fiscal 2022; and
  • The Rest of World region grew 16.0 percent to £64.5 million for the year.

In a video clip following the results, company Founder and CEO Ben Francis said the business was launching its first wholesale partnership with Selfridges, which would drop its “highest quality athleisure range yet” in-store, called “Everywear.” Gymshark also reported it would open a year-round pop-up shop in New York City and expand into Dubai in the spring.

Francis claimed 2024 would be “Gymshark’s biggest year ever” following the success of 2023 but admitted its fast-growth days were probably gone after a challenging year that saw the company reduce its workforce for the first time.

During the year, the average number of employees fell from 918 to 853. In January 2023, the company cut its North American team from approximately 125 to 40 and closed its regional sourcing offices in Hong Kong and Mauritius.

Gymshark reported it intends to move into a new 7,000-square-foot space in London’s Westfield Stratford, which will create more than 75 jobs.

Images courtesy Gymshark