Sweaty Betty reports 4.5 percent revenue growth while restructuring impacts profitability

UK activewear brand Sweaty Betty has published its financial statements for the 53-week period ended January 3, 2026, reporting revenue growth alongside reduced operating profits following a year of structural transformation.

Turnover for the period rose 4.5 percent to 146.72 million pounds (194.40 million dollars), up from 140.42 million pounds in the previous 52-week period ended December 29, 2024. Sales in week 53 contributed 3.7 million pounds to total revenue. Gross profit increased 2.4 percent to 76.32 million pounds, compared to 74.54 million pounds in 2024, although gross profit margin contracted slightly to 52 percent from 53.1 percent.

Restructuring costs weigh on profitability

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 2.48 million pounds, compared to 10.48 million pounds recorded in the prior financial year. The company reported a statutory loss before taxation of 5.25 million pounds, compared to a profit of 1.57 million pounds in 2024. After accounting for a tax credit of 2.74 million pounds, the net loss for the financial period stood at 2.51 million pounds, down from a net profit of 573,586 pounds in 2024.

According to directors, the decline in earnings reflects an increase in administrative expenses and operational costs linked to restructuring business functions across the company, rather than underlying performance.

Key decisions executed during the year included a systems harmonisation project transitioning UK operations to SAP accounting software, as well as combining customer service teams across the UK, Europe and the US.

UK market leads international channel expansion

The UK remained the largest market for Sweaty Betty, generating 111.14 million pounds in turnover and representing 76 percent of total revenue, compared to 80 percent in 2024. The US accounted for 6 percent of sales at 9.45 million pounds, while the rest of the world expanded its share to 18 percent, delivering 26.13 million pounds in sales compared to 20 million pounds in the previous period.

The company, which operates as a subsidiary of UK intermediate holding firm Lady of Leisure Holdings Limited under ultimate parent US footwear and apparel group Wolverine World Wide Inc., also operates retail stores for group brands Saucony and Merrell.

The directors did not recommend the payment of a dividend for the period.