After a significant restructuring period, Gwyneth Paltrow’s lifestyle brand Goop is showing strong financial recovery with 10% revenue growth in 2024. The actress and entrepreneur, whose Gwyneth Paltrow net worth has been built largely through her business ventures, spoke candidly to Fortune about the company’s financial journey and her approach to sustainable growth.
Despite multiple rounds of layoffs in 2024, Paltrow reports that the overall business is healthy. “The company’s 2024 revenue increased 10% from 2023,” she revealed in an exclusive interview. This growth comes as Goop refocuses on its core strengths: beauty, fashion, and food.
Impressive Growth Across Multiple Categories
According to Paltrow, Goop Beauty saw particularly impressive performance with a 34% increase, while the G. Label fashion line grew 42% year-over-year. Perhaps most surprising is the success of Goop Kitchen, which saw its revenue from six ghost kitchens throughout Los Angeles grow by 60%.
“When COVID happened, it threw so many consumer businesses into instability. I was really trying to conserve all the money on the balance sheet,” Paltrow explained about the decision to restructure. “I got to a point about a year ago where our payroll number was high, and I needed to be fiscally more disciplined.”
The restructuring process wasn’t easy. “It’s very painful, and probably why I don’t do this as often as I should,” Paltrow admitted. “But sometimes for the rigor of the business, it’s necessary.”
‘Fight Club’: Paltrow’s Secret Business Weapon
Paltrow credits much of her business acumen to what she jokingly calls her “Fight Club” — a group chat of female CEOs that provides her with invaluable advice. “I have great help. I have great coaches, mentors. I have a group of female CEO-founders I’m on a group chat with,” she shared. “It’s a very safe space where we can go and talk through some of the harder things.”
The entrepreneur is now focused on making calculated decisions about where to invest Goop’s resources. “Where are you getting the most bang for your buck if your resources are limited? What are the businesses that have the best customer with the most longevity, buying the products with the most margin?”
The Path to Profitability and Future Plans
Looking ahead, Paltrow says Goop is “very, very close” to profitability, calling it “incredibly exciting, and a big milestone.” The company has already had several profitable months but won’t claim full profitability until they can sustain it for a full year.
As for exit strategies, Paltrow is firmly in building mode. “I’m very excited to build. I’m excited to open more stores. To index into our wholesale strategies, to go into other countries,” she stated. “I’m in building mode and not thinking about an exit right now. I don’t even really want to think about it for another three years.”
With Goop approaching its 20th anniversary in the next few years, Paltrow’s financial strategy appears to be working. By returning to the brand’s core offering and making difficult but necessary business decisions, she’s positioned the company for continued growth and eventual profitability.