Rapha has reported a further fall in turnover and a widening trading loss as chief executive Fran Millar leaves the cycling clothing brand and the company announces a formal consultation process with affected employees over a proposed restructure.
The company said turnover fell from £96m in the financial year ending January 2025 to £89m in the year ending January 2026. Its EBITDA trading loss widened from £2.6m to £5.6m, while the operating loss increased from £17.2m to £21.2m.
Rapha said the latest result represented its ninth consecutive annual loss. Road.cc reported that the company recorded a net loss of £25.3m for the year, after a £15.6m net loss in the preceding year.
Road.cc also reported that Rapha’s turnover had been £110m in 2024. It said the business had recorded an EBITDA profit of £900,000 in 2023/24, before the successive EBITDA losses cited in the latest figures. Those results underline the scale of the financial improvement still being sought by the company.
The lower turnover and wider losses come as Rapha pursues its stated financial improvement plan aimed at reaching sustainable profitability by 2027. The brand also accepted that significant changes were needed to create a stronger long-term footing.
Millar leaves as Rapha plans a simpler organisation
Millar stepped down after two years as chief executive. Rapha said she had suggested to its board that she leave so that new leadership could guide the next phase of the strategy, and the board had accepted that decision.
The company credited Millar with stabilising operations, refocusing its product roadmap and refocusing the global Rapha Cycling Club community during her tenure. However, it said the delivery of its strategy now required a different leadership structure.
Alongside her departure, Rapha announced a proposed organisational restructure and said a formal consultation process with affected team members would now take place. The company did not disclose the number of roles that could be affected.
Rapha said it intended to concentrate resources on the products and experiences most important to riders through a simpler organisation. It acknowledged the potential personal impact on employees involved in the consultation, while maintaining that the proposed changes were necessary.
The company said its executive team had a strategic roadmap with board support, and cited new partnerships including one with USA Cycling ahead of the LA28 Olympic Games. Those were company statements about its intended direction, rather than evidence that the proposed restructure has already delivered an improvement.
The combined leadership change, deteriorating annual figures and staff consultation mark a substantial reset for the British brand. The organisational restructure is proposed, and Rapha said a formal consultation process with affected team members would now take place.
Company points to investment and early recovery signs
Rapha linked the weaker annual outcome to spending on its products, brand, cycling communities and customer experience. It also said it had moved away from frequent discounting and promotions, presenting that approach as part of a longer-term attempt to improve the business.
For the current financial year, Rapha reported better trading in some of its markets and at comparable Clubhouses. It said it had held fewer promotional days than a year earlier while bringing in more customers, though these were company-reported measures rather than completed full-year results.
The business said Rapha Cycling Club membership was up 18% year to date. It also reported strong visitor numbers at its Shanghai Clubhouse and said the Bentonville site had brought in 31% more new customers than in the comparable period a year earlier.
Rapha further reported that customer lifetime value had increased, and said changes to its Pro Team performance range had helped sales. The company presented those measures as signs that its strategy was gaining traction, against financial results that showed lower turnover and larger losses.
The company said its new Clubhouse concept was performing strongly, while identifying growth in selected markets and like-for-like Clubhouses. Its figures nonetheless show that turnover fell during the latest financial year as both its EBITDA trading loss and operating loss increased.
Co-owner Steuart Walton said that he and his brother Tom remained committed to Rapha and confident in its long-term future. The announcement leaves Rapha attempting to translate its company-reported early indicators into progress toward its stated profitability target.