VANCOUVER, BC, March 16, 2022 /CNW/ - RYU Apparel
Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYAA) ("RYU" or
the "Company"), creator of award-winning urban athletic
apparel, is pleased to share a letter from COO Rob Blair.
DEAR FELLOW SHAREHOLDERS & INVESTMENT COMMUNITY
During the past eight months, I've had the privilege of meeting
valued RYU shareholders, customers, brand partners, and members of
the broader investment community. If we've met, I hope to have
conveyed the principles that guide my leadership style: honesty,
transparency, and a collective commitment to not only doing the job
right, but to doing it better than anyone else in the
world.
That is the bar we set, and the approach we take, here at
RYU.
2022 has come roaring in and I'm pleased to share that we're off
to our best start in 3-years. Our eCommerce revenues,
transaction rate and average order value is anticipated at double-
and triple-digit growth and we are now seeing comparative
markers to Pre-Pandemic years. Starting out the year on the right
foot has been an upshot 12-months in the making.
With that said, looking back at 2021, we are admittedly
disappointed with the overall results. Although we made great
strides in building a foundation for long-term growth, and
partnered with some fantastic brands, athletes and causes, the
significant global supply chain challenges and restrictions related
to the pandemic impeded our operations. Heading into 2022,
that disappointment, combined with the successes we pulled off
despite the many hurdles, is the fuel that drives us unwaveringly
toward our objectives. We have retooled the entire organization to
include industry veterans, exceptional creative minds and external
agency partners that have collectively brought the focus of RYU
back to eCommerce, crafting world-class products and generating
demand for those products.
We developed and implemented a four-pillar growth strategy,
which I outlined in my first letter to shareholders in June of this
year. That strategy began to take root in the second
half of the year, contributing to encouraging third quarter
revenues, which were up 300% compared to the same period last
year.
Following our positive third quarter results, we remain
optimistic and well-positioned for further growth, especially
considering the revenue contribution for our soon-to-be-launched
consumer products, as well as revenue related to inventory
shortages and delayed deliveries, won't be accounted for until
approximately Q3 of this year
That said, if this two-year period has taught us anything, it is
not to adopt a "grow at any cost" mentality, but rather to deliver
long-term shareholder value through the best-in-category product we
hold ourselves to and a focus on steady and sustainably profitable
growth. So as the pandemic continues into its third year, and
global supply chain issues, restrictions and shutdowns remain a
reality, we will continue to holistically review our business and
adjust operational priorities accordingly. Without question,
this starts with adjustments to inventory control, retail and
partnerships.
Anticipating the aggregation of these headwinds, we've adjusted
inventory purchase quantity and staggered delivery cadence, as well
as further vetted marketing partnership opportunities to manage
risk and exposure. We have multi-year relationships across our
tight knit supply chain, and a primarily vertical distribution
model that allows us to maintain premium products and price-points
while shortening go-to-market timelines. During the second half of
2021, we will accelerate revenue growth through FW22 key item
reorders and new color drops. We have also added a Central American
knit manufacturer to our supply chain to deliver high-margin (duty
free), high-energy, quick-strike tee and fleece programs.
As we consider all aspects of our omni-channel strategy, we
remain digital-first with a continued focus on accelerating the
adoption of our newly launched printed catalog business. Through
the delivery of high-quality, content-rich catalogs and
digital content, we aim to reduce customer acquisition costs while
increasing brand recognition and long-term customer value through
repeat purchasing.
As part of this strategy, and with the continued shift of
consumer shopping to digital landscapes we made the tough
decision to close our Williamsburg
and Toronto store locations on
February 26th and
March 27th accordingly and
are now concentrating on co-located to "shop-in-shops' and store
partnerships – predominantly in the USA. Reducing our retail footprint, while
expanding our omni-channel accessibility will better insulate us
from economic downturns and market fluctuations which have
historically forced brands to cut costs and re-evaluate priorities.
The Vancouver flagship location,
which also serves as Company headquarters, will remain open driving
experiential retail, community, and new product activations.
This endeavor has achieved a momentous start with the
appointment of industry heavyweights DJM Sales Consulting to lead
global sales and oversee the company's wholesale strategy as
well Caraway & Co Sales Agency as our US national sales
agency of record.
Respectively, these groups have achieved tremendous results for
their brand partners. During their tenure at SAXX Underwear, DJM
created a global wholesale division that generated $35M+ in revenue
increases and Caraway & Co has a proven track record of
productive sales increases for some of the world's top brands
including UGG, Prana, Mountain Hardware and Havaianas.
Forward momentum with key nation-wide retailers has already been
established.
In conjunction with these moves, RYU will now anchor its design,
development and marketing efforts towards its male customer base.
Accounting for approximately 70% of our eCommerce business, a
re-focusing of capital investments towards this customer will
maximize the performance of capital and further position us for
category dominance. Alongside our men's business we will continue
to produce smaller capsule collections with a varying seasonal
delivery cadence for our loyal female customers.
Leading the digital marketing charge for RYU will be newly hired
Zachary Beers. Formerly from
Arc'teryx, where he helped grow direct-to-consumer revenue from
$1million to $500 million, Mr. Beers will oversee online and
marketing efforts across eCommerce, social media, paid media, email
and printed catalogs as well as strategic marketing partnership
activations.
Through our re-invigorated product lines and new, CULTURE OF
MOVEMENT brand position under the mantra MOVEMENT MATTERS, we are
seeking to open up our audience to a wide range of guests and
introduce them to product solutions and unique brand experiences.
By targeting movement as a holistic part of life, we can approach a
number of market areas where there is little RYU brand awareness
and build top-of-the-funnel acquisition. Movement enthusiasts exist
well outside the walls of a gym or traditional competitive sports,
and we will be there to engage with them while they're on the move.
We have a loyal and dedicated brand following and we want to bring
our new Movement Matters philosophy to strategic audiences that
have yet to meet RYU.
To empower our rebranding efforts, we're doubling down on
content creation internally. Using digital as our leading edge to
drive new awareness, content is king. We have on boarded a number
of creative talents to support new and engaging storytelling
opportunities and couldn't be more excited to launch Movement
Matters to the world. Investors can expect to see polished creative
that will drive an emotional connection with our brand and be
authentically relevant to both our core and new audiences in May of
this year.
With an emphasis on digital for RYU, there's a lot of potential
in staking our claim in the metaverse. Web3 and its basket of
technologies is here and should not be ignored. We also recognize
the pent-up demand for physical community experiences based on the
past 2 years of pandemic restrictions. RYU is uniquely positioned
to leverage our movement-based storytelling to merge online and
offline experiences leveraging metaverse concepts. We hope to be
pioneers that set the precedents on how direct-to-consumer brands
use blockchain, NFTs, Augmented Reality, and other emerging
technologies and not simply follow others.
As Web3 and the metaverse become more refined, the possibilities
will only be limited by our imagination. Our competitive advantage
as an agile company allows us to lean into this space earlier than
larger brands and define success around building the Store of the
Future and becoming a Brand of the Future.
Movement does not exist solely along physical terms and with our
focus on digital development and emerging technologies, there is
untapped potential in the esports space. While esports may not have
been a traditional target for our brand, the needs of both the
competitive and recreational gaming communities are clearly
addressed by our product offering and the growth of this sector is
undeniable. By using our Movement Matters storytelling and seeking
to create a holistic digital-physical experience using emerging
technologies and concepts, there's a great opportunity to drive
digital first guests into our physical experiences and vice versa.
RYU plans to not be contained by boundaries in either the physical
or digital worlds and has the right product with the right story at
the right time to cater to our guests no matter where they are
between online-offline environments.
The company has spent the past 14-months entrenched in a chapter
of re-building to an extent of which the company has never seen. We
are a discovery brand, and it goes without saying that we will
continue to make clear-cut data driven decisions that align with
the retail market at large, as well as the key drivers of our own
business.
We are well positioned in 2022. As I shared above, our focus is
on slow, steady and sustainably profitable growth with a continued
commitment to intelligent innovation in the space. The
losses incurred in 2021 remain significantly lower than in prior
years, thanks to our continued adjustments - a trend we expect to
continue.
The true potential of the RYU brand lies in the exceptional
group of people who are driving it forward. We have built a common
vision for the future and relish the opportunity to overcome the
challenges we will undoubtedly face as we achieve our
objectives.
I conclude by expressing my deepest gratitude to our customers
who have stood by us through the pandemic, and to our shareholders
and board members for their continued support and council.
About RYU Apparel
RYU Apparel (TSXV: RYU, OTCQB: RYPPF), or Respect Your Universe,
is an award winning urban athletic apparel and accessories
brand engineered for active lifestyles. Designed without compromise
for fit, comfort, and durability, RYU exists to facilitate optimal
human performance. For more information, please visit the RYU
website at: http://ryu.com
Forward Looking Statements Disclaimer
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
This news release contains forward-looking information that
involves 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 RYU. There are numerous risks and uncertainties that
could cause actual results and RYU's plans and objectives to differ
materially from those expressed in the forward-looking information,
including: (i) adverse market conditions resulting in the inability
of RYU to raise necessary financing required to enter and make
payments under the proposed definitive agreements; (ii) the
inability of RYU to obtain any necessary approvals in respect of
the proposed agreements, including approvals necessary for the
issuance of the RSU's; and (iii) inability to restructure and
transform its business as required. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral
forward-looking statements 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, RYU
does not intend to update these forward-looking
statements.
RYU APPAREL INC.
Cesare
Fazari
Chairman & Chief Executive Officer
+1 (604) 235-2880
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ryu-coo-rob-blair-provides-strategy-and-operational-update-to-shareholders-301503772.html
SOURCE RYU Apparel Inc.