Gymshark shrugs off pandemic to file strong results

By

Sandra Halliday

Published
May 23, 2022

Fast-growing sportswear company Gymshark Group has filed its accounts for the year to July 31, 2021 and they showed that the business continued to prosper even during a difficult time hit by lockdowns and subdued consumer sentiment. 

The firm, which is the parent company of Gymshark Ltd and Gymshark USA, said it continued to grow its sales and profit throughout the period in all of its key territories globally.

Its revenue increased by 54% to £401.9 million and the gross profit margin was 70%, while pre-tax profit increased during the year to £45.4 million from £30.4 million a year earlier.

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It also said that orders increased by 53% and units sold increased by 63% during the 12-month period. Meanwhile conversion increased by 84bps and international sales were up 47%.

That's all clearly very good news, but the company still pointed out that the year was a challenging one, although it also said that it was one full of opportunities too, especially for a company like itself as a specialist in D2C e-commerce. 

The results also covered the year in which it brought in a minority equity partner to help elevate its growth, with General Atlantic acquiring 21% of the company in September 2020.

Distressing though it was, overall, the impact of the pandemic was positive for the business as it “caused a shift in consumer behaviour, accentuating the attraction of online shopping and promoting trends of wellness and casualisation,” it said. “The group was well placed to benefit from these macro trends to service its existing community and attract new customers.”

And it says that the trend for fitness and conditioning clothing continues to be strong, although the external environment remains challenging. The company didn't include any update on how current trading is going and whether the supply chain challenges and cost of living crisis are affecting its business in any way.