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<\/a><\/p>![\"Gymshark](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2022\/09\/1658224858725-1024x623-1-1-696x423.jpg\" "\\"Gymshark")
<\/div>\n\/\/<\/span> Gymshark profits slip due to soaring operational and production costs<\/h6>\n\/\/\u00a0<\/span>The activewear retailer posted full-year pre-tax profits dropped 39% to \u00a327.8m<\/h6>\nGymshark\u2019s full-year profits have been weighed down by climbing costs despite sales rocketing 21%.<\/p>\n
The activewear retailer pre-tax profits plunged 39% to \u00a327.8m in the year to 31 July 2022, down from \u00a345.4m the year before, despite sales jumping to \u00a3484.5m.<\/p>\n
The sales uptick was led by 25% rise in the US, while the UK edged up less than 3% to \u00a389m.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\nGymshark said it was hit by one-off costs from setting up its US distribution network, the flagship on London\u2019s Regent Street and increased discounting.<\/p>\n
It also had a \u00a32.2m restructuring bill, as it\u00a0cut 65 US employees in January.<\/p>\n
The retailer said:\u00a0\u201cThe consumer has had more opportunities to apply discretionary spend to entertainment and travel, but inflation and rising costs are also affecting spending.<\/p>\n
\u201cDespite these pressures, the company has continued to grow its like-for-like external sales.<\/p>\n
\u201cThe company remains profitable, though margins have been affected by the general economic environment.\u201d<\/p>\n
Click here to sign up to Retail Gazette\u2018s free daily email newsletter<\/strong><\/em><\/p>\n<\/p><\/div>\n
Gymshark\u2019s full-year profits have been weighed down by climbing costs despite sales rocketing 21%.<\/p>\n
The activewear retailer pre-tax profits plunged 39% to \u00a327.8m in the year to 31 July 2022, down from \u00a345.4m the year before, despite sales jumping to \u00a3484.5m.<\/p>\n
The sales uptick was led by 25% rise in the US, while the UK edged up less than 3% to \u00a389m.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\nGymshark said it was hit by one-off costs from setting up its US distribution network, the flagship on London\u2019s Regent Street and increased discounting.<\/p>\n
It also had a \u00a32.2m restructuring bill, as it\u00a0cut 65 US employees in January.<\/p>\n
The retailer said:\u00a0\u201cThe consumer has had more opportunities to apply discretionary spend to entertainment and travel, but inflation and rising costs are also affecting spending.<\/p>\n
\u201cDespite these pressures, the company has continued to grow its like-for-like external sales.<\/p>\n
\u201cThe company remains profitable, though margins have been affected by the general economic environment.\u201d<\/p>\n
Click here to sign up to Retail Gazette\u2018s free daily email newsletter<\/strong><\/em><\/p>\n<\/p><\/div>\n
Gymshark said it was hit by one-off costs from setting up its US distribution network, the flagship on London\u2019s Regent Street and increased discounting.<\/p>\n
It also had a \u00a32.2m restructuring bill, as it\u00a0cut 65 US employees in January.<\/p>\n
The retailer said:\u00a0\u201cThe consumer has had more opportunities to apply discretionary spend to entertainment and travel, but inflation and rising costs are also affecting spending.<\/p>\n
\u201cDespite these pressures, the company has continued to grow its like-for-like external sales.<\/p>\n
\u201cThe company remains profitable, though margins have been affected by the general economic environment.\u201d<\/p>\n
Click here to sign up to Retail Gazette\u2018s free daily email newsletter<\/strong><\/em><\/p>\n<\/p><\/div>\n