Women’s sportswear brand Sweaty Betty is actively seeking a new investor in light of its impressive sales growth in the athleisure segment. The UK-based company has approached Goldman Sachs to explore potential private equity interest in a deal that could value the company at around £250 million. Sweaty Betty, which is currently backed by private equity firm L Catterton, operates more than 60 stores across the UK, US, Canada, and Hong Kong.

Despite the challenges brought on by the COVID-19 pandemic, Sweaty Betty has experienced remarkable success, with demand for its sportswear range skyrocketing as consumers sought comfortable and stylish athleisure options while working from home during lockdown.

While specific sales figures for this year have not yet been released, Sweaty Betty’s performance in 2018 was already strong, with sales growing by 17% to reach £63 million and pre-tax losses narrowing to £4.2 million. However, potential investors may view the brand’s heavy reliance on physical stores as a disadvantage in the current retail landscape, which has seen a significant shift towards online shopping.

Reports of a potential sale have been circulating for months, but both Sweaty Betty and Goldman Sachs have refrained from commenting on the matter. The global athleisure market has seen rapid growth in recent years, driven by changing consumer preferences and an increasing interest in fitness and wellness. Sweaty Betty’s decision to seek investment reflects the brand’s confidence in its ability to capitalize on the continued popularity of athleisure wear.

The athleisure segment has become highly competitive, with numerous brands vying for market share. However, Sweaty Betty has managed to distinguish itself by focusing on the combination of fashion and function. The brand offers a range of stylish activewear pieces that are not only suitable for workouts but also seamlessly transition into everyday outfits. This versatility has contributed to Sweaty Betty’s appeal among consumers looking for clothing that can be worn both at the gym and in other social settings.

By actively searching for a new investor, Sweaty Betty aims to solidify its position in the athleisure market and expand its global presence. A potential investment from a private equity firm could provide the necessary resources and expertise to support the brand’s growth plans, such as opening new stores and investing in e-commerce capabilities.

The COVID-19 pandemic has posed significant challenges for the retail industry, but it has also created opportunities for brands that can adapt to changing consumer demands. Sweaty Betty’s success during this difficult period underscores the resilience of the athleisure market and the brand’s ability to connect with customers. As more people embrace a healthier and more active lifestyle, the demand for stylish and functional sportswear is expected to continue growing.

In conclusion, Sweaty Betty’s search for a new investor demonstrates its strong performance in the athleisure segment and its ambition to expand globally. With its unique blend of fashion and functionality, the brand is well-positioned to capitalize on the increasing popularity of athleisure wear. As the retail industry continues to evolve, Sweaty Betty’s ability to adapt and innovate will be crucial in maintaining its competitive edge.

Useful links:
1. Sweaty Betty Official Website
2. Sweaty Betty Sale Rumors Article