JD Gyms in the red despite price rises boosting sales to £100m
Turnover at JD Gyms, which is part of the wider empire owned by FTSE 100 giant JD Sports, fell to a loss despite its sales passing £100m during its latest financial year, it has been revealed.
The Greater Manchester-headquartered company has reported a pre-tax loss of £29,000 for the 12 months to 3 February, 2024, having posted a pre-tax profit of £16.4m in the prior year.
The loss comes despite its revenue rising from £81.1m to £100.8m in the 12 months, according to newly-filed accounts with Companies House.
JD Gyms finished its financial year with 85 sites, up from 79, and around 536,000 members, a rise from 453,000.
The company said its higher sales “reflect enhanced membership volumes aligned to 24-hour operations and club reinvestment alongside underlying yield growth on the back of selective club-level member price increases”.
JD Gyms creates almost 250 jobs
During the year JD Gyms increased its membership prices rise above its typical £19.99 monthly fee “following significant multi-year compounded inflationary pressures”.
JD Gyms said its “directors are confident that the selective price increases continue to offer our members best in class value at those clubs impacted”.
During the year, the average number of people employed by JD Gyms jumped from 708 to 954.
The results for JD Gyms come after JD Sports itself reported a record revenue for the first half of its financial year after a pick-up in sales and the acquisition of American retailer Hibbett.
Revenue at the retailer reached just over £5bn in the 26 weeks to 3 August, 2024, up by 5.2 per cent year on year.
Its pre-tax profit also rose by two per cent to £405m, while earnings per share rose 4.5 per cent to 5.15p.
City AM has also reported that Go Outdoors, which is also owned by JD Sports, has slumped into the red thanks to a “disproportionate” rise in costs.