Fitness community and apparel brand Gymshark has seen its pre-tax profit fall for a third successive year, despite breaking £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 £607.3m for the year to July 31st 2024 on Companies House.
This marks an increase on the £556.2m it made in FY23, meaning the business has now seen revenue growth for 12 years running.
Despite this, the company’s pre-tax profit has dropped to £11.8m, lower than its FY23 total of £13m and its FY22 total of £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.
Gymshark’s adjusted EBITDA, however, rose by 14% to £51.7m.
In a statement, Gymshark said: “The company has traded successfully during FY24 growing its revenues, improving profitability and continuing to satisfy its customers.
“The 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.
“The 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.
“The 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.”
Francis, who is CEO of the fitness-focused retail giant, added: “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 macroeconomic 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 realise our dream of becoming a 100-year brand continuing to make the best gym products for our consumers.”