VANCOUVER, Aug. 28, 2018 /PRNewswire/ – RYU Apparel Inc. (TSX-V:RYU, OTC US:RYPPF, FRA: RYA) (“RYU” or the “Company“), creator of urban athletic apparel, is pleased to report its financial results for the three and six months ended June 30, 2018.
Revenue in the second quarter of 2018 was $1,142,572, 78% higher than the same period in 2017, and revenue in the first six months of 2018 was $2,050,487, 85% higher than the same period in 2017. RYU’s financial results have been encouraging with continued sales growth in 2018 and a 53% gross profit margin for the quarter.
“These results come at a very exciting time for RYU as we look forward to the opening of our first three stores in the USA and the launch of our new RYU. com website in the second half of 2018,”
said Marcello Leone, CEO.
“This is our tenth consecutive quarter of growth and we are confident that we will meet our 2018 retail revenue target of 100% year-over-year growth,”
added Mr. Leone.
During the six months ended June 30, 2018, the Company achieved the following milestones:
The Company addressed its cash requirements for the year, strengthened its balance sheet and created a solid foundation for growth.
The Company was able to normalize its supply chain and invest strategically in its omni-channel retail and e-commerce platforms for growth.
RYU’s expansion plan is on target to have nine stores by the end of 2018 and to achieve 100%+ year-over-year growth in retail revenue. In the first half of 2018, the Company began construction planning at its retail stores in Brooklyn, New York and Newport Beach, California and construction was underway at its retail store in Venice, California, which opened on August 2, 2018. The Company also secured the lease to its second Toronto, Ontario location at Sherway Gardens Shopping Centre. This expansion gives RYU exposure in New York City and Los Angeles, the most important urban centres of both coasts of the United States, and a broader footprint in the largest urban centre in Canada. As at June 30, 2018, all stores were under construction and had targeted openings in the third and fourth quarters of 2018.
The Company significantly invested in world-class talent to design, innovate and expand its product categories for growth.
RYU secured new strategic wholesale accounts with Nordstrom, Equinox Canada, Rise by We, and Steve Nash Fitness World & Sports Club that align with its brand value proposition.
RYU was selected as a finalist for the World Retail Awards in two categories: Retail Start Up of the Year and Social Media Campaign of the Year (#RYUOneMoreRep). The Company was honoured to be one of only two Canadian companies that qualified as finalists at the World Retail Awards.
The Company’s new global advertising and branding campaign orchestrated by THRSXTY/Exposure, ‘#YourUniverse’, launched in August 2018 in conjunction with RYU’s first US store opening in Venice, California.
The Company joined the Canaccord Genuity Opportunities for the Longer-Term Program (the “COLTS Program”). The COLTS Program is a capital markets initiative that will profile high growth and small-cap companies, such as RYU.
Outlook for the second half of 2018:
- The Company will see its business infrastructure come together through a series of IT integrations from the design stage of its products through to the end user experience.
- The Company is launching a more experiential e-commerce website in October and implementing a new point of sale system at all retail store locations in September. These investments enable scalable growth over the next several years.
- The Company is preparing to launch a number of new product categories over the next 12 to 18 months to complement RYU’s existing ‘hero’ and ‘core’ programs.
For a greater understanding of our business, operations and results, readers are encouraged to review the Company’s unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2018, including the notes thereto, and the corresponding management’s discussion and analysis, each of which is available under the Company’s profile on www.sedar.com.
For regular updates on RYU Apparel visit: http://ryu.com
About RYU
Respect Your Universe (TSX-V:RYU, OTC US:RYPPF, FRA: RYA) is an award winning urban athletic apparel and accessories brand engineered for the fitness, performance and lifestyle of athletically minded men and women. Innovatively designed without compromise and tailored for fit, comfort, and durability, RYU exists to facilitate human performance. For more information, visit: http://ryu.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as statements that: (i) the Company will meet its 2018 retail revenue target of 100% year-over-year growth; (ii) the opening of the Company’s first three USA retail store locations and the launch of its new RYU.com website will take place in the second half of 2018; (iii) the Company’s business infrastructure will come together in the second half of 2018 through a series of IT integrations; (iv) the Company is launching a more experiential e-commerce website in October and implementing a new point of sale system at all retail store locations in September; (v) the Company is preparing to launch a number of new product categories over the next 12 to 18 months to complement its existing ‘hero’ and ‘core’ programs; (vi) the expansion plan is to have nine stores open by the end of 2018; and (vii) the store locations under construction have target openings during the third and fourth quarters of 2018. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including the ability of the company to finance operations, the ability of the management team to execute on its business plan, risks in the apparel industry in general, and delays and risks associated with renovating and opening new store locations. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
SOURCE RYU Apparel Inc.
