// Gymshark profits slip due to soaring operational and production costs
// The activewear retailer posted full-year pre-tax profits dropped 39% to £27.8m
Gymshark’s full-year profits have been weighed down by climbing costs despite sales rocketing 21%.
The activewear retailer pre-tax profits plunged 39% to £27.8m in the year to 31 July 2022, down from £45.4m the year before, despite sales jumping to £484.5m.
The sales uptick was led by 25% rise in the US, while the UK edged up less than 3% to £89m.
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Gymshark said it was hit by one-off costs from setting up its US distribution network, the flagship on London’s Regent Street and increased discounting.
It also had a £2.2m restructuring bill, as it cut 65 US employees in January.
The retailer said: “The consumer has had more opportunities to apply discretionary spend to entertainment and travel, but inflation and rising costs are also affecting spending.
“Despite these pressures, the company has continued to grow its like-for-like external sales.
“The company remains profitable, though margins have been affected by the general economic environment.”