RYU Apparel Reports 304% Increase in Q3 Revenue

Rhea-AI Summary

RYU Apparel Inc. (RYPPF) reported a significant 304% increase in sales, totaling $313,986 for the three months ending September 30, 2021. Despite global supply chain challenges, the company demonstrates strong performance with USA retail sales up 199% and a 320% increase in wholesale business. They have launched a sustainable growth strategy and expanded retail presence in key markets. The CEO expressed confidence in future growth, supported by an increase in customer acquisitions and a successful eCommerce strategy.

Positive

• 304% increase in sales to $313,986 for Q3 2021.
• USA retail sales up 199% year-over-year.
• 320% growth in US wholesale business compared to last quarter.
• 86% eCommerce conversion rate improvement.
• Successful omni-channel strategy with the launch of a printed catalogue.

Negative

• Global supply chain challenges remain an industry-wide concern.
• Sales impacted by inventory shortages and delayed deliveries.

VANCOUVER, BC, Dec. 10, 2021 /PRNewswire/ - RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYAA) ("RYU" or the "Company"), creator of award-winning urban athletic apparel, is pleased to announce that the Company has reported sales of $313,9868 for the three-month period ending September 30^th, 2021, a 304% increase over the prior year.

During the first two quarters of 2021, RYU's inventory and sales were significantly impeded by the global supply chain challenges and restrictions associated with the pandemic.  Although many of the global headwinds remain industry-wide challenges, the revenue increase represents an inflection point as the company continues to build upon its strong foundation and corporate strategy.

Other fiscal period highlights Include:

• During the last three months, RYU has efficiently deployed its foundational product architecture, brand tenants and omni-channel ecosystem that have enabled the launch of its four-pillared sustainable growth strategy.
• Combined USA retail Point of Sale (POS) and eCommerce sales are up 199% vs. the same period from the previous year.
• Fully opened its Vancouver, Toronto, and Williamsburg store locations, expanded its floor sales team and piloted a new retail guest experience.
• Overall combined Canadian and USA retail Point of Sale (POS) is up 173%¹ from the previous quarter.
• Expanded management team with two key hires in Global Sales and Social Media Management. Both divisions have now completed an in-depth audit and restructuring of key performance indicators on traffic, conversion rates, search engine optimization (SEO), and search engine marketing (SEM).
• The US wholesale business is up 320% from vs. the same period from last quarter
• Increased eCommerce conversion rate of 86% compared to the same period last year. New customer acquisitions, driven primarily by paid media channels, is achieving 3:1
• Launched first printed catalogue with distribution to households across the U.S., a key component of their omni-channel strategy

 

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1 Specific eCommerce and Retail results are unaudited
converted to CAD		* 1.2405 CAD/USD	*1.267 CAD/USD

LETTER FROM CEO

Over the last two years I have been set on marshaling in a new era for RYU with a focus on strong capital market partners and establishing a team of world class apparel executives. Those who know me well know I'm eager, enthusiastic and that I pride myself on honesty and dedication to achieving results that drive shareholder value.

My experiences over these past two years have taught me the importance of patience and clear processes for developing a successful apparel business. Growth is something we have achieved as professionals, as a team and at every level of RYU's business.

Our team has fully operationalized this business, and in the past nine-month period, has achieved many of our stated corporate objectives. By way of example, in his first letter to shareholders in June, COO Rob Blair stated we would accelerate revenue in the second half of 2021. Our increase of 304% vs. the previous period last year is a marker that reflects our team's commitment to delivering on our corporate strategy. As the market forecast continues to trend upwards in the athleisure category, we are positioned for further growth especially considering this past quarter does not yet include revenue contribution for soon-to-be-launched consumer products, as well as revenue contribution related to  inventory shortages and delayed deliveries.  

Although much of what makes an apparel company like RYU great never makes a headline, Mr. Blair continues to effectively and tirelessly rebuild the business and add key components that will further our product innovations, unparalleled customer experiences, demand creations and seamless end-to-end brand experience.

As we press onward, I thank shareholders for their continued support and patience, and I am excited for the team to share more about their plans for 2022 and beyond.

Sincerely,

Ceasare Fazari

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 the fitness, performance and lifestyle of the athletic man and woman. 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. 

View original content:https://www.prnewswire.com/news-releases/ryu-apparel-reports-304-increase-in-q3-revenue-301441917.html

SOURCE RYU Apparel Inc.

FAQ

What were RYU Apparel's Q3 2021 sales figures?

RYU Apparel reported sales of $313,986 for the three months ending September 30, 2021.

How much did RYU Apparel's sales increase in Q3 2021?

Sales increased by 304% compared to the same period last year.

What growth strategy is RYU Apparel implementing?

RYU is implementing a sustainable growth strategy with a focus on omni-channel retail.

How have RYU Apparel's retail sales performed in the USA?

USA retail sales have increased by 199% year-over-year.

What challenges did RYU Apparel face during the sales period?

The company faced challenges due to global supply chain issues and inventory shortages.