VANCOUVER, Aug. 27, 2019 /CNW/ - RYU Apparel Inc. (TSXV:
RYU) ("RYU" or the "Company"), creators of urban
athletic apparel, is pleased to report its financial results for
the three and six months ended June 30,
2019.
Revenue in the second quarter of 2019 was $1,501,547, 31% higher than the same period in
2018, and revenue in the first six months of 2019 was $2,711,413, 32% higher than the same period in
2018. RYU's financial results continue to be encouraging with
consistent sales growth in 2019 and a 49% gross profit margin for
the quarter.
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
(unaudited)
|
(unaudited)
|
In Canadian
dollars
|
2019
|
2018
|
2019
|
2018
|
Revenue
|
$1,501,547
|
$1,142,572
|
$2,711,413
|
$2,050,487
|
Gross
profit
|
$735,043
|
$603,691
|
$1,268,788
|
$1,023,581
|
Gross profit
%
|
49%
|
53%
|
47%
|
50%
|
"We are pleased that second quarter results are consistent with
our Phase II strategy of creating brand awareness, continued
revenue growth, streamlining operating efficiencies and reduction
of costs," said Marcello Leone, CEO.
"We are pleased to have achieved our fourteenth consecutive quarter
of revenue growth. We continue to focus on achieving greater
productivity from our retail locations in all four major markets as
well as growing our digital marketing presence and e-commerce
business globally to 30% of our overall business by 2022."
The Company also saw continued reduction of its total operating
expenses by $803,026 or 19% in the
current quarter compared to the same period in 2018. Effective cost
controls remain one of the top priorities of the Leadership team.
The Company expects continued reduction of costs and improved
efficiencies for the second half of 2019.
During the six months ended June 30,
2019, the Company achieved the following milestones:
- RYU grew to nine retail locations by June 30, 2019 with the opening of a new retail
location in Newport Beach,
California during the first quarter. RYU has prominent
exposure in Vancouver,
Toronto, New York City and Southern California, the most important urban
centers on both coasts of Canada
and the USA. The Company expects
to achieve meaningful year over year growth in overall revenues by
the end of the year.
- As a result of RYU's continued investment, growth, brand
recognition and customer experience during the quarter, the Company
won the following awards in May
2019:
-
- Startup Canada Global Entrepreneurship of The Year Award for
the region of British Columbia
which celebrates and recognizes companies that demonstrate
innovation, excellence, outstanding achievement, and impact in
advancing entrepreneurship in Canada
- The prestigious award of "Best Customer Experience Initiative"
presented at the World Retail Conference held at the National
Maritime Museum in Amsterdam –
The Netherlands.
- The Company closed non-brokered private placements on
February 12th,
February 28th,
March 28th, May 17th and June 6th, raising gross proceeds of
$2,863,257, $779,900, $637,447,
$1,869,772 and $249,500 respectively.
Readers are encouraged to review the Company's condensed
consolidated interim financial statements in their entirety,
including the notes thereto, and corresponding MD&A on
SEDAR. Full details of the Company's financial performance
can be obtained by viewing the annual consolidated financial
statements and corresponding MD&A available on SEDAR.
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. 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-second-quarter-2019-results-highlighting-31-revenue-increase-300908040.html
SOURCE RYU Apparel Inc.