In its accounts filed for FY23, activewear brand Gymshark Group Limited revealed a 15 percent increase in revenue, reaching 556.2 million pounds. However, the company experienced a contraction in its gross margin, dropping to 60 percent from 65 percent in the previous year. Pre-tax profit also saw a decline, falling to 13.1 million pounds.
Despite these challenges, Gymshark's EBITDA showed positive growth, reaching 40.4 million pounds including exceptional items and 45.3 million pounds excluding exceptional items. CEO and founder Ben Francis shared key highlights of the company's 2023 financial results and outlined ambitious plans for 2024 in a video note on Gymshark's official LinkedIn page.
During the fiscal year, Gymshark achieved significant milestones such as opening its first permanent retail store on London's Regent Street and planning a second retail location in London's Westfield Stratford City. The company also secured a lease agreement for one of its distribution centers in Pennsylvania, US.
Looking ahead to 2024, Gymshark announced plans to venture into wholesale retailing by launching a premium activewear range named 'Everywear' in collaboration with department store Selfridges. Additionally, the company will establish a pop-up store in Manhattan, New York for a 12-month period and expand its online presence in Dubai and the Middle East.
Despite a 13.1 percent increase in orders in 2023, down from 13.9 percent in the previous year, Gymshark experienced an 8.7 percent rise in units sold compared to a 27.5 percent increase in the prior year. International sales also saw growth, increasing by 12.5 percent.
Throughout 2023, Gymshark made strategic leadership appointments, including Mat Dune as chief financial officer and Laurent Madelaine as chief supply chain and product officer. The company underwent a restructuring of its North American operations in January 2023, reducing headcount from 125 to 40 and closing regional sourcing offices in Hong Kong and Mauritius.
