VANCOUVER, Nov. 26, 2018 /CNW/ - RYU Apparel Inc.
(TSXV: RYU, OTCQB: RYPPF) ("RYU" or the
"Company"), creator of urban athletic apparel, is
pleased to report its financial results for the three and nine
months ended September 30, 2018.
Revenue in the third quarter of 2018 was $1,223,524, 64% higher than the same period in
2017, and revenue in the first nine months of 2018 was $3,274,011, 77% higher than the same period in
2017. RYU's financial results have been encouraging with continued
sales growth in 2018 and a 58% gross profit margin for the
quarter.
In Canadian
dollars
|
Three months
ended
September
30,
(unaudited)
|
Nine months
ended
September
30,
(unaudited)
|
2018
|
2017
|
2018
|
2017
|
Revenue
|
$1,223,524
|
$745,226
|
$3,274,011
|
$1,853,460
|
Gross
profit
|
$710,545
|
$338,789
|
$1,734,126
|
$852,821
|
Gross profit
%
|
58%
|
45%
|
53%
|
46%
|
Marcello Leone, CEO, commented:
"We are encouraged with our eleventh consecutive quarter of growth.
This is a confirmation that our brand, in its early stage,
continues to gain traction. With nine stores operating by the end
of this fiscal year and potentially more to follow in 2019, we hope
our shareholders take the time to experience the RYU brand, whether
in-store or online, and continue to build the community of Respect
Your Universe."
During the nine months ended September
30, 2018, the Company achieved the following
milestones:
- The Company raised $20 million,
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. The new RYU.com is slated to open in the fourth quarter
of 2018.
- The Company's first US retail store location opened on
August 2, 2018 in Venice, California.
- RYU's expansion plan is on target to have nine stores by the
end of 2018. Construction continues at its retail stores in
Brooklyn, New York, Newport Beach, California and Sherway Gardens
in Toronto.
- 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.
- On October 8th, 2018, RYU's
common shares started trading on the OTCQB Marketplace under the
trading symbol OTCQB: RYPPF. The Company provided this platform to
its existing and prospective US shareholders to align its corporate
structure with its business expansion in the US retail
marketplace.
- The Company implemented a new point of sale system at all
retail store locations in September
2018. This investment enables scalable growth over the next
several years.
Outlook for the rest 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 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 nine months ended September 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 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.
On Behalf of the Board
RYU APPAREL INC.
"Marcello
Leone"
Marcello Leone,
CEO, President and Chairman of the Board
Tel: 604-235-2880
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
opening of the Company's first three USA retail store locations and the launch of
its new RYU.com website will take place by the end of 2018; (ii)
the Company's business infrastructure will come together in 2018
through a series of IT integrations; (iii) the new RYU.com is
slated to open in the fourth quarter of 2018; (iv) 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; (v) the expansion plan is to have nine stores open by the
end of 2018; and (vi) the store locations under construction have
target openings during the fourth quarter 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.
View original
content:http://www.prnewswire.com/news-releases/ryu-apparel-reports-third-quarter-2018-results-highlighting-64-revenue-increase-and-58-gross-profit-margin-300754978.html
SOURCE RYU Apparel Inc.