Gymshark Eyes ‘Biggest Year Ever’ Despite Profit Dip
A push into wholesale, an NYC-based pop-up and a new premium line are all in the works for one of Gen-Z’s favorite activewear brands
Gymshark may have experienced slumping profits in 2023 but is focusing on its increased sales, as the popular U.K.-based activewear brand has made big plans to expand its presence through retail and debut a new premium line.
The activewear brand reported revenue was up 15% to £556.2 ($709 million), according to a recent filing reviewing the fiscal year ending July 31, 2023. However, it reported profit before tax was £13.1 million ($16.5 million), down from £27.8 million ($35.3 million) in the previous year.
Despite facing the pains of rising raw material, labor costs and cost of living increases affecting consumer spending, Gymshark maintains that it has continued to grow. In contrast, activewear giants such as Athleta and Under Armour have reported dwindling sales.
“I thought I’d jump on here and give you the numbers myself, but also take the opportunity to tell you about some of the moments that are going to make 2024 Gymshark’s BIGGEST. YEAR.EVER.,” posted Gymshark CEO and founder Ben Francis on LinkedIn. He included a video where he outlined key performance details from Gymshark’s 2023 financial results, reflected on the brand’s biggest Black Friday and single-day sales that the brand has seen and shared what’s in store for 2024.
Gymshark’s flagship store on London’s Regent Street experienced sales ahead of expectations, according to the filing. More than just merchandise, the experiential location offers special events, community gatherings and workout spaces. The concept has been such a hit that Gymshark has announced a second retail location in London’s Westfield Stratford City, which boasts over 44 million visitors annually.
Gymshark Goes High-End, Eyes NYC
As for its product offerings, 2024 will see Gymshark launching its “highest quality athleisure range yet,” according to Francis, adding that the new high-end line, ‘Everywear,’ is born from repeated requests from the Gymshark community for an even more premium product.
“So we listened,” Francis said, “And I personally have been really involved in the development of this range, and I cannot wait for you to touch and feel this product.”
The new line will launch exclusively in the U.K.’s upscale department store, Selfridges.
“We had to launch it somewhere iconic,” Francis said of the famed retailer, adding that the move also marks Gymshark’s first foray into wholesale.
Gymshark will also open a pop-up store in New York with a 12-month run, which Francis teased will be in the heart of Manhattan. As for its e-commerce division, the brand plans to become available in the Dubai region this spring and the wider Middle Eastern area.
Lifting Roots
The activewear brand also plans to continue leaning into in-person experiences, heading to Miami for a huge upcoming event, #LiftMiami, on February 24 and 25.
As the U.K.’s youngest billionaire, Francis has made a fortune with Gymshark, harnessing the power of Instagram, TikTok and fitness influencers who would sport Gymshark apparel in exchange for a small payment. In a garage-to-riches story that landed Gymshark the coveted unicorn status in 2020, the entrepreneur has dodged IPO talk, telling Retail Gazette in 2022 that the brand had plenty on its plate and that it was looking to “smash the U.S. market.”
At the start of last year, the activewear brand laid off 65 stateside employees in Colorado in an attempt to centralize locations and safeguard the future of its business. By fall, Gymshark tapped Google Cloud and generative AI to power its next growth phase, contextualizing transactional data from purchases versus activities from its fitness training app to provide product suggestions to customers.
