Gymshark profits have soared by almost 50% in the year to July 31 2021, reaching £45.4m as the sportswear company continued to prosper throughout Covid lockdowns and uncertain consumer sentiment.
The group’s accounts, filed at Companies House, revealed that the disruptive ecommerce company had continued to grow both sales and profit throughout the period, across all of its key global territories.
Revenue increased by 54% to £401.9 million, with a the gross profit margin of 70%. The number of orders placed increased by 53% over the period, while international sales were up by a similarly impressive 47%.
Despite these impressive results, Gymshark said the year was challenging, but full of opportunities for companies like itself, operating a D2C ecommerce model.
It also said the impact of the pandemic “caused a shift in consumer behaviour, accentuating the attraction of online shopping and promoting trends of wellness and casualisation.
“The group was well placed to benefit from these macro trends to service its existing community and attract new customers.”
As part of its ongoing international expansion and restructure, Gymshark also confirmed it had plans to cut 120 jobs in the coming months, although more than 100 new jobs will also be created as part of the shuffle.
Chief executive Ben Francis – who ranked 191st in this year’s Sunday Times Rich List and is worth £900 million – said: “This was an incredibly difficult decision to come to and we know that this will be upsetting for our people.
“These proposals are subject to consultation and no decision has been made about how we will ultimately proceed.
“The proposals also see over 100 new roles being created and of course we will seek to offer as many of our people as possible these new roles where it is appropriate to do so.
He went on to add that the changes were driven by Gymshark’s “international expansion, ambitious growth plans and the need to create commercial accountability”.