Sportswear Brand Breaks Barrier Despite Declining Profits
- Gymshark surpasses £600m revenue mark for the first time
- 9% increase in revenue from previous year
- Third consecutive year of declining profits
- Pre-tax profit falls to £11.8m from £13m
- Adjusted EBITDA rises by 14% to £51.7m
- Orders increase by 14.1%, units sold up 13.6%
- International sales growth: UK sales up 20.9%, European sales up 12.6%
- US market revenue steady at £251m
- CEO Ben Francis focuses on controlling expenditure for future omnichannel expansion
- Plans to open flagship store in New York’s Bond Street
Gymshark has achieved a record revenue of £607.3m for the year ending 31 July 2024, marking its twelfth consecutive year of growth and surpassing the £600m mark for the first time. However, pre-tax profit fell to £11.8m from £13m in the previous year, representing the third consecutive year of declining profits. The company continues to invest in omnichannel expansion and digital infrastructure. Adjusted EBITDA increased by 14% to £51.7m, with orders up 14.1% and units sold rising by 13.6%. International sales grew, including a 20.9% increase in UK sales and a 12.6% surge in European sales (excluding the UK). The US market remained steady at £251m. CEO Ben Francis emphasizes controlling expenditure for future growth and plans to open a flagship store in New York’s Bond Street. Gymshark aims to become a 100-year brand.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Gymshark’s financial performance, including revenue growth, profit decline, and international sales figures. It also includes a statement from the CEO regarding future plans for expansion. The only minor issue is the mention of Ikea’s Oxford Street flagship store opening, which is unrelated to Gymshark and may be considered a digression.
Noise Level: 3
Noise Justification: The article provides relevant information about Gymshark’s financial performance and growth, including revenue, profit, and international sales figures. It also mentions the company’s focus on omnichannel expansion and future plans for store openings. However, it briefly diverts into unrelated news about Ikea’s Oxford Street flagship without any clear connection to Gymshark’s performance or industry trends.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Gymshark’s financial performance, including revenue growth and profit decline, as well as its international expansion plans. It does not directly impact specific financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailgazette.co.uk