Tala’s Revenue Soars, But Losses Widen Amidst Strategic Shift

Gymwear brand Tala experienced a mixed financial performance in the year ending March 2025, reporting increased revenue alongside widening losses. The company announced an 18% rise in revenue, reaching £19.8 million, however, operating losses grew to £2.64 million, a significant increase compared to the nearly £1 million loss recorded in the previous year.

The net loss for the year also increased, totaling £2.49 million, exceeding the just-under £1 million loss from the prior year. This downturn in profitability can be attributed to several factors, most notably a strategic decision to scale back operations in the United States following the implementation of tariffs.

Despite an 18% increase in US revenue, the company found it fell short of its projected targets, prompting the operational adjustments. Tala anticipates the full effects of this revised strategy will be reflected in the financial results for 2025/26 and is actively working to restructure operations to minimize further costs to the group.

However, the year wasn’t without its positive developments. Tala opened its first brick-and-mortar store in London in May 2025, after the close of the financial year, signaling a move towards physical retail. The company has ambitious plans for further store openings both within the UK and internationally over the next three years.

Furthermore, Tala experienced substantial growth in its wholesale channel, achieving an eightfold increase in performance compared to the previous year, driven by the addition of new wholesale partners. This success indicates a strong demand for the brand through alternative retail avenues.

Founded in 2019 by Grace Beverley, Tala has attracted investment from Pembroke VCT, Venrex, and Active Partners. These investors demonstrated continued confidence in the brand by increasing their stakes in July 2024 with a further investment of £4.6 million.