Gymshark is restructuring the company after reporting that earnings in its latest year had declined due to omnichannel investments and is facing “intense macro-economic volatility” in the marketplace.
Gymshark told UK media outlets, “We can confirm we have proposed a business restructure, which will place approximately 296 roles at risk of redundancy. However, at the same time, we will be creating 168 new roles to help drive our future growth. Therefore, our immediate priority is to help and support those at risk through this process while seeking to offer as many of them as possible these new roles.
“We find ourselves in a time of intense macro-economic volatility. We, like so many others in the retail sector, need to be set up not only to weather these near-term storms, but also to build and grow in the future.
“We have, therefore, carefully reviewed our operating model and organizational structure to ensure we have the right teams and roles to support these goals.”
On April 29, Gymshark, a privately-held company, reported sales reached £607.3 million ($809 mm) for its year ended July 31, 2024, up 9.2 percent from £556.2 million the previous year, according to newly filed accounts at Companies House, as reported by City AM. However, pre-tax profit slid 9.2 percent to £11.9 million from £13.1 million for FY23.
In a statement, Gymshark said it continues to “strategically invest in its well-documented omnichannel expansion, with stores confirmed in London, New York, Dubai, Amsterdam, Manchester, Bicester, and a New York City headquarters to drive its U.S. business alongside continued investment into the digital technology stack which underpins Gymshark’s e-commerce business.”
Gymshark’s pre-tax earnings also slid in its FY23 year from £27.8 million in FY22.
The company’s adjusted EBITDA in its latest year rose 14 percent to £51.7 million. Gymshark also reported a 14.1 percent increase in orders, a 13.6 percent rise in units sold and a 5.9 percent growth in international sales.
Gymshark, founded in 2012, reported a slight increase in its U.S. revenue, from £250.4 million to £251 million over the year, while its UK sales jumped 22.1 percent to £136.4 million. European sales, excluding the UK, rose 12.6 percent to £145.7 million from £129.4 million, while revenue in other global markets rose 14.5 percent to £74 million.
In a statement, Ben Francis, founder and CEO, 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 realize our dream of becoming a 100-year brand, continuing to make the best gym products for our consumers.”
Image courtesy Gymshark
