Struggling sportswear retailer makes harsh cuts to stay afloat
Most wouldn't believe that a pizza delivery guy and his group of young university friends would come up with one of the most popular modern-day sportswear brands while lifting weights at the gym late at night.
This company began with no financial backing in 2012 as a small, nearly blank website that sold supplements from third-party retailers. Two months after its debut, it received its first order, and slowly, it began incorporating apparel, if it could even be called that.
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The apparel consisted of baggy T-shirts and tanks with a logo screen-printed on them, just like the ones sweaty weightlifters like to wear at the gym to show off their muscles.
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Nonetheless, this former pizza delivery guy had a vision and began producing and shipping the items himself.
That's how Gymshark, the British activewear brand co-founded by the now self-made billionaire Ben Francis, was born.
Gymshark reveals a new restructuring plan.Image source:Gymshark rises to fame with its influencer marketing business strategy
Like most companies, Gymshark had a slow start. However, Francis refused to give up on his dream and thought of a way to enter the community he so badly desired to win over.
Francis began sending his merchandise to bodybuilders and weightlifters he admired to get their feedback. These athletes liked his clothing so much that they started promoting it to their communities.
Related: Apple makes surprising move amid high China tariffs
Influencer marketing was just emerging, and Francis implemented it in his business strategy at the right time. This led him to sign some of the biggest names in fitness to promote his brand and build a community that believed in Gymshark just as much as he did.
Nearly 13 years later, Gymshark has four physical stores, a massive fanbase, and a huge e-commerce platform that operates in and ships to over 180 countries worldwide.
Gymshark unveils a restructuring process to mitigate economic pressures
For its fiscal year 2024, Gymshark hit a record-high revenue of over £600 million (around $801 million), up 9% from the previous year, making this the 12th year in a row of sales increases.
However, pre-tax profits fell to £11.9 million, a decrease from £13.1 million in 2023, marking the company's third consecutive year of profit declines.
"Looking to the future, it's no secret that the retail sector is feeling the strain from macroeconomic pressures. As such, we are ensuring we have a heightened focus on controlling our expenditure, so we are best set up to become a fully omnichannel business and realise our dream of becoming a 100-year brand continuing to make the best gym products for our consumers," said Francis in a statement.
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