Rapha losses almost double to £22.7m as UK turnover drops 20% amid "challenged" cycling sector, brand's seventh consecutive year in the red

Rapha has reported another significant loss, the figure almost doubling to £22.7m in 2023-24 as the premium cycling clothing brand posted a loss for the seventh consecutive year.

Blaming the ongoing competitiveness and turbulence of the "challenged" post-pandemic cycling industry, Rapha's pre-tax losses deepened from £12m to £22.7m in the year to 28 January 2024.

The clothing brand, which recently celebrated its 20th birthday, also noted the year was impacted by the expensive closure of two regional warehouses and consolidation of stock and operations in a single UK distribution centre, a project that Rapha says "drove an exceptional cost" but has improved supply chain efficiency and removed "significant" overhead from the business.

> 20 years of Rapha: Co-founder Simon Mottram on tiffs with Team Sky, MAMILs and cycling's skin-suited future

With that said, in the year to January 2024, turnover was £110m (down seven per cent), pre-tax losses deepened to £22.7m from £12m and post-tax losses more than doubled to £19.6m from £9.6m.

It is the seventh consecutive year in the red for Rapha, its second worst in that time period (only exceeded by £32m in 2019), and also the worst since pandemic-impacted 2020 (£23.5m).

Director Sean Clarke, on behalf of Rapha's board, said the accounts come "against the backdrop of an ongoing turbulent and competitive post-pandemic cycling sector, as well as decreased confidence in several key markets".

"Rapha has continued to strengthen its core business operations, returning to a positive EBITDA (earnings before interest, tax, depreciation and amortisation) pre-exceptional items position," he added. "Marketing and product teams remain focused on making the Rapha brand more visible and engaging to cyclists, as well as delivering a steady stream of product innovation to increase customer lifetime value."

Independent auditors reported they "have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the company's ability to continue as a going concern for a period of at least twelve months".

Sales in the UK were hardest hit, Rapha almost matching its turnover in Europe and USA/Canada compared with 2022-23.

In the UK, turnover was from £22.3m to £17.7m, a drop of 18 per cent. Elsewhere, turnover in Europe was almost identical to 2022-23 (£30.6m compared with £30.7m), while the USA and Canada's drop in turnover was only down two per cent and remained the business's biggest sector, racking up £34m from sales.

> Rapha makes redundancies as US office closes in "realigning" of business due to "current market dynamics"

The Rest of the World market saw Rapha's turnover drop to £1.5m from £1.9m.

The year to January 2024 also saw the number of Rapha Cycling Club members fall by nearly 20 per cent, dropping to 18,000, while the number of new online customers was 118,000 in 2023-24, down from 148,000 in 2022-23.

In August, it was revealed that former Ineos Grenadiers boss Fran Millar had joined Rapha as the business's new CEO, replacing Francois Convercey.

Founder Simon Mottram said Millar's appointment "marks a significant milestone" for the company and said her "deep understanding of the cycling industry, combined with her proven track record in leading high-performance teams and brands, positions her uniquely to guide Rapha into its next chapter".

road.cc has contacted Rapha for comment about its accounts for 2023-24.