Gymshark Group, a rapidly growing sportswear company, has defied the challenges brought on by the pandemic and achieved strong results. According to the company’s accounts for the year ending July 31, 2021, Gymshark continued to thrive despite lockdowns and subdued consumer sentiment. Both Gymshark Ltd and its subsidiary, Gymshark USA, experienced sales and profit growth globally. Revenue surged by 54% to reach £401.9 million, with a gross profit margin of 70%. Additionally, pre-tax profit rose to £45.4 million compared to £30.4 million the previous year.

The company’s success was also evident in its performance metrics. Gymshark witnessed a 53% increase in orders and a 63% increase in units sold over the 12-month period. Conversion rates improved by 84 basis points, and international sales experienced a significant uptick of 47%. Despite the challenging circumstances, Gymshark highlighted that the pandemic also presented numerous opportunities, particularly for a direct-to-consumer (D2C) e-commerce specialist like itself. In 2020, Gymshark secured General Atlantic as a minority equity partner, acquiring a 21% stake in the company.

Interestingly, despite the overall distress caused by the pandemic, it had a positive impact on Gymshark’s business. The shift in consumer behavior towards online shopping, along with the growing preference for wellness and casual wear, played to Gymshark’s strengths and attracted new customers. The company remains optimistic about the sustained demand for fitness and conditioning clothing, despite the challenging external environment.

However, it is important to note that Gymshark did not provide an update on its current trading performance or the potential impact of supply chain disruptions and the cost of living crisis. These factors continue to pose challenges for many businesses in the retail sector. Nevertheless, Gymshark’s strong financial results and ability to adapt to changing market dynamics position it well for future growth.

Useful links:
Gymshark Official Website
The Guardian – Gymshark Reports Strong Profits Amid Pandemic