British cycling clothing brand posts £14m loss, falling deep into the red
Endura enjoyed profitable years during the pandemic, but has since fallen victim to a drop in sales
British cycling clothing brand Endura has posted “significant” financial losses at a challenging time for the industry’s retail market.
The Edinburgh-based company shared its annual accounts on Tuesday, revealing a £14,119,000 pre-tax loss, down from a profit of £759,000 at the end of 2022. The latest reporting period covers the 13 months to February 2024.
It is the first time Endura has posted a loss since 2019, and follows prosperity during the pandemic, when profits remained over £2.5m.
In a note accompanying the latest accounts, company director Andrew Long said a “large reduction in sales” had filtered down into a “significant loss in the year”.
“The movement in the period is due to a reduction in sales, primarily in the United Kingdom region, which reflected challenging market conditions found throughout the cycling industry after unforeseen growth during the Covid pandemic,” Long wrote. “The challenging market is even more evident in the turnover figures given we have an extended year end this year.”
Over the 13-month period, Endura’s turnover from sales fell from almost £41m at the end of 2022 to £28.5m. Some of the company’s losses also came from “impairment” of inventory, with the value of its stock drawn down in value by £2.8m.
Endura is a subsidiary of the Pentland Group, which is known for being a majority shareholder of JD Sports. Despite the cycling brand’s losses, its parent company confirmed it will “provide the support, as appropriate” to allow it to meet its liabilities for the next 12 months. Pentland, which also owns Speedo and Berghaus, enjoyed a profit after tax for the same financial period of £339.8m.
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
In comments shared with Cycling Weekly, Endura's senior vice president Noah Bernard said: “We know that during the pandemic, many people bought their cycling kit and it’s taken a while for the wider market to catch up.
“Pentland Brands operates a portfolio of brands in a number of categories, and is committed to Endura and the exciting growth plans we have in key markets around the world like the US, UK and Germany. We’re also doubling down on mountain biking and gravel – which lie at the heart of the dirt lifestyle we are notorious for.”
Bernard added that he remains “positive” about the brand's future.
Still, Endura’s woes mirror those across the cycling clothing industry. Earlier this year, Le Col shared losses in excess of £6m, while last month, Rapha posted a pre-tax loss of £22.7m, marking seven years in the red.
In a statement at the time, a Rapha spokesperson said the company was “focused on further improving business profitability and resilience” against a “backdrop of a turbulent and competitive post-pandemic cycling sector”.
Following the pandemic, many companies were left with surplus stock, and faced reduced demand from consumers. These market conditions contributed to Wiggle Chain Reaction Cycles entering administration in late 2023, with the company eventually bought by Frasers Group. Elsewhere, UK-based clothing companies Presca and Milltag were forced to cease trading.
Experts have said businesses within the industry are currently working on the mantra ‘survive to 2025’, when it is hoped overstocking will settle.
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Tom joined Cycling Weekly as a news and features writer in the summer of 2022, having previously contributed as a freelancer. He is fluent in French and Spanish, and holds a master's degree in International Journalism, which he passed with distinction. Since 2020, he has been the host of The TT Podcast, offering race analysis and rider interviews.
An enthusiastic cyclist himself, Tom likes it most when the road goes uphill, and actively seeks out double-figure gradients on his rides. His best result is 28th in a hill-climb competition, albeit out of 40 entrants.
-
USA Cycling unveils 2025 National Championship schedule with 17 chances to claim the Stars and Stripes jersey
From cycling eSports in February to cyclocross in December, here are the dates and locations for the 2025 season
By Anne-Marije Rook Published
-
Tech of the week: A shockingly expensive steel bike from Colnago, a surprisingly affordable carbon bike from Pinarello, DT Swiss energises our cycling lives and Pog's bars are now yours to buy
Colnago's Steelnova is a thing of beauty but you'll pay for the pleasure, while Pinarello's F1 is an inexpensive gateway to the brand. DT Swiss enters the dynamo hub market and Enve brings Pog's cockpit to market
By Luke Friend Published
-
'Things remain tough for everyone in the trade': Cycling distributors unfazed by plummeting profits
Industry holds optimism for recovery, despite continued losses
By Tom Davidson Published
-
Introducing the start-up that helps cyclists find local mechanics and get a 'better service'
'We want to support the majority of the smaller, independent chains that are out there,' says Bikebook founder
By Tom Davidson Published
-
‘The market is in chaos’ - Trek set to make cuts amid high industry stock levels
Brand's reported plan to reduce product line by 40% is a "sensible move", says one industry expert
By Tom Davidson Published
-
Price slashing on bikes helps boost industry, says report
New bike sales could reach almost £1billion in 2024
By Tom Davidson Published
-
'We’re basically queuing up for containers': Delays - but not price hikes - expected amid Red Sea shipping crisis
Brands are experiencing a two-week wait for products, with shipping costs rising marginally
By Tom Davidson Published
-
Scott receives £137m loan as industry overstocking crisis bites
Swiss bike manufacturer borrows money from shareholder for "financial support"
By Tom Davidson Published
-
Beloved bike brand set to appoint administrators
West Yorkshire-based Orange Bikes has been around for over 30 years
By Tom Davidson Published
-
Job cuts confirmed at Raleigh
British manufacturer to move HQ in wide-reaching restructure plans
By Tom Davidson Published