Sweaty Betty, now under the ownership of US giant Wolverine since the summer of 2021, unveils its financial performance for the year ending January 2023. As a UK-registered company, it navigates the challenges of a transformative year, showcasing both resilience and strategic moves.
Despite a headline decrease of 8.5%, equivalent to £15.5 million, in turnover, reaching £167.7 million, Sweaty Betty faced a dynamic market. Costs of sales surged from £88 million to £101 million, leading to a drop in gross profit from £94.5 million to £66 million. EBITDA mirrored this trend, declining from £17.6 million to £130,868.
The financial narrative includes an operating loss of £4.6 million, a stark contrast to the £13.8 million profit in the previous period. A pre-tax loss of £5.1 million replaced a profit of £13.7 million, with the net loss shrinking from £11.4 million to £4.3 million.
Wolverine’s acquisition and the reorganization of North American wholesale operations left an indelible mark on Sweaty Betty’s 2022 performance. However, beneath the surface, the underlying performance only experienced a «slight» dip compared to 2021, reflecting the broader economic and sociopolitical landscape.
Wolverine’s strategic vision for Sweaty Betty unfolds in recent milestones, including expansion into Northern Ireland, the launch of a concept store at Battersea Power Station mall, and the unveiling of the largest store in northern England at Liverpool One. Leadership changes, with a new global president stepping in, further underscore Wolverine’s commitment to Sweaty Betty’s growth.
As Sweaty Betty charts its course post-acquisition, this resilient brand, bolstered by Wolverine’s strategic moves, continues to position itself for sustained growth and expansion.