Sweaty Betty returns to profit despite turnover drop

Sweaty Betty is back in profit for the first time in several years, its new accounts for 2024 filed at Companies House show.

The London-based brand reported turnover down to £140.4 million from £144.2 million last year, although the cost of sales also fell. Gross profit rose to £74.5 million from £71.3 million and EBITDA was up to £7.48 million from a loss of £4.52 million a year earlier. 

The company swung to an operating profit, making £3.57 million this time after a loss of £11 million in the prior year. And profit before tax was £1.5 million, much better than the £13.4 million loss of the previous year. The company managed a net profit of £0.57 million this time compared to a loss of £10.55 million the year before.

UK turnover declined to £111 million from £116.4 million and US turnover fell to £9.3 million from £13.5 million. But its operations in the rest of the world were stronger with an increase to £19.9 million from £14.2 million. 

During the year the company also expanded its American presence with two new stores in Chicago and Washington DC.

It said that following the 2023 reorganisation, which transferred North American wholesale operations out of Sweaty Betty Ltd, the company demonstrated a “strong recovery” in 2024 as it returned to profitability. This was supported by the improved gross margin performance, tighter cost control, and a significant reduction in organisational exceptional items.

Owned by Wolverine Worldwide, Sweaty Betty was last profitable in 2021, the year that founders Tamara and Simon Hill-Norton sold it to the American giant. Its parent company has since undertaken a major reorganisation at the business and the latest year saw job cuts, reducing its headcount to 903 from 990.