Fitness community and apparel brand Gymshark has seen its pre-tax profit fall for a third successive year, despite breaking 拢600m in revenue for the first time.
The Solihull-based firm, which was co-founded by Forbes billionaire Ben Francis MBE, has posted sales of 拢607.3m for the year to July 31st 2024 on Companies House.
This marks an increase on the 拢556.2m it made in FY23, meaning the business has now seen revenue growth for 12 years running.
Despite this, the company鈥檚 pre-tax profit has dropped to 拢11.8m, lower than its FY23 total of 拢13m and its FY22 total of 拢27.8m.
Its headcount has increased according to its latest filings, with the company employing 881 staff, a slight rise from 853 in July 2023.聽
Gymshark鈥檚 adjusted EBITDA, however, rose by 14% to 拢51.7m.
In a statement, Gymshark said: 鈥�The company has traded successfully during FY24 growing its revenues, improving profitability and continuing to satisfy its customers.
鈥淭he directors are mindful of the general macroeconomic environment which has continued to create challenges for apparel businesses and consumers alike. The company has continued to face rising input costs, including rising raw materials and labour costs.聽
鈥淭he board has continued to monitor these costs closely as well as changes to the macro environment, from a general perspective and with regard to conditions in key geographies.
鈥淭he overall strategy of the group headed by Gymshark Group Limited (“Gymshark”) remains to continue increasing revenues in a profitable and sustainable manner, and to create and develop attractive products to its growing consumer base.鈥�
Francis, who is CEO of the fitness-focused retail giant, added: 鈥淒espite well-reported economic turbulence, FY24 represented another strong year of growth for Gymshark.
鈥淲e broke the 拢600m barrier for the first time, and adjusted EBITDA rose by double-digit numbers.
鈥淟ooking to the future, it鈥檚 no secret that the retail sector is feeling the strain from macroeconomic pressures.
鈥淎s 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.鈥�