

Is Gymshark in Trouble? Breaking Down Their Newest Filings. + More
May 5, 2025
Drew Fallon and Mehtab dive into Gymshark's latest financial filings and discuss the brand's evolution and challenges in a competitive market. They explore the impact of rising influencer marketing costs on profitability and growth. The hosts analyze Gymshark's cash flow dynamics and share strategies for inventory management. Additionally, they emphasize the need for strategic planning in business management and warn against the pitfalls of overcomplicated initiatives. This insightful conversation covers essential topics for navigating the retail landscape.
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Gymshark's Growth Profitability Dilemma
- Gymshark grew quickly through social media influencer marketing but now faces slowing growth and razor-thin net income margins.
- Their transition challenges illustrate the difficulty of sustaining hyper-growth while becoming profitable in retail apparel.
Gymshark’s Early Days
- Gymshark started dropshipping supplements before pioneering aggressive influencer marketing in fitness apparel.
- Co-founder Lewis Morgan also created another notable fashion brand, showing repeated success in the space.
Gymshark's Cash Flow Mastery
- Gymshark achieved an extremely rare negative cash conversion cycle repeatedly over recent years.
- This indicates strong supplier terms or consignment deals enabling rapid scaling without cash drain.