British premium cycling clothing brand Rapha is set to have a “proposed organisational restructure and a formal consultation process”, as the company prepares to post deepening financial losses. Despite this, Rapha says that its “strategy is working”.
A press release on Wednesday afternoon, sent after Fran Millar announced that she had resigned as CEO, revealed that turnover had dropped by £7m from £96m in FY24, the period ending 26 January 2025, to £89m in FY25, the period ending 25 January 2026.
The brand also posted a trading loss in its EBITDA (earnings before interest, taxes, depreciation and amortisation) of £5.6m this year, an increase from £2.6m the previous year. Its operating loss is now at £21.2m, which has increased from £17.2m the previous financial year. This means losses for the ninth year in a row.
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The press release, shared with Cycling Weekly, reads: “These numbers reflect deliberate decisions to invest in our brand, product quality, cycling communities and customer experiences, while reducing our reliance on discount and promotional related activities – choices that will strengthen the business over time.
“Early signs in the current financial year suggest the strategy is working. We are seeing encouraging revenue growth in a number of our key territories and in our like-for-like Clubhouses, with fewer days on promotion and increased customer acquisition vs last year. Rapha Cycling Club membership has returned to growth, increasing by 18% year-to-date.
“Rapha’s new Clubhouse concept is also performing strongly: Shanghai has recorded some of the highest footfall across the global Clubhouse network, and Bentonville has attracted 31% more new customers year on year. Customer lifetime value is growing and product innovation in our pinnacle performance range, Pro Team, is positively impacting sales.”
Last year, it was explained that a large part of Rapha’s annual losses stems from an amortisation, which is responsible for around £10m of losses a year.
As a result of the company’s financial situation, “significant changes” are now planned at Rapha to try and ensure the future of the brand. The first of these was confirmed as Millar’s departure.
“This involves a proposed organisational restructure and a formal consultation process with affected team members will now take place,” the press release explains. “We believe these proposed changes are necessary but recognise the personal impact on affected colleagues, and we do not take these decisions lightly.”
The company is owned by brothers Steuart and Tom Walton, the grandchildren of the billionaire founders of the retail giant Walmart. “My brother and I have been majority owners of Rapha for nine years,” Steuart Walton said. “We love the brand, the product, and what Rapha stands for, and we are deeply grateful to the people who have made the company so special.
“Our belief in Rapha has not changed. We remain committed to the power of cycling to make the world a better place and to Rapha’s unique role in advancing that idea. We are confident in the long-term future of the brand and committed to helping Rapha achieve its ambitions.”
