Gymshark Group Ltd.’s net profit rose by 47 percent to £36.5 million (€41.4m) from £24.8 million for the 12 months ended July 31, 2021. Group revenues for the DTC-only brand increased by 68 percent to £401.9 million (€455.8m) from £260.7 million. Financial year operating profit slipped to 11.6 percent from 11.9 percent as Ebit increased by 49 percent to £45.4 million from £30.4 million.
By region, group revenues rose by 55.5 percent across Europe, including the brand’s home U.K. market, to £170.8 million (€193.7m) from £109.8 million for the 12 months. U.S. sales were 53 percent higher to £182.9 million (€207.4m), and Rest of World revenues increased 53.5 percent to £48.2 million (€54.7m).
In April, Gymshark, which sold a 21 percent equity stake to General Atlantic in Sept. 2020, announced a restructuring completed by July 31. The £2.5 million (€2.8m) plan includes 120 job reductions and the creation of 100 new roles, giving some furloughed employees the ability to slide into new posts. Year-to-date revenues for the 12 months ending July 31 are up more than 20 percent, and it’s unlikely that profitability will decline in the period, the company said in a public filing.
The group will spend approximately £21.9 million (€2.2m) on a lease to open a retail store on London’s Regent Street in September, the brand’s first foray into brick-and-mortar retail. The British fitness apparel and accessories company, founded in 2012, is majority-owned by co-founder Ben Francis.
