RYU Apparel Announces 2021 Earnings Amidst Strategic Rebuilding and Rebranding Efforts
VANCOUVER, BC, May 2, 2022 /CNW/ - RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYA) ("RYU" or the "Company"), creator of award-winning urban athletic apparel, has filed its consolidated financial statements and related management's discussion and analysis for the year ended December 31, 2021, both of which are available for investors to read here. Revenue for the year ended December 31, 2021 was $1,272,950, 19% lower than revenue of $1,567,167 for the year ended December 31, 2020. Overall financial results declined with sales and gross profit down from the same period in 2020, mostly due to the Covid-19 pandemic and store closures. Other losses were the result of strategic decisions to rebuild the brand, which the Company expects will pave the way for future growth. COO Rob Blair will formally address the earnings, along with future plans for the Company, in a video address this May.
In a strategic move to rebrand the Company, focus on ecommerce, craft world-class products and generate demand for those products, some difficult decisions were made. Those decisions, which have negatively impacted the Company's profit margin in the short term, were made with an eye toward long-term, sustainable growth.
Some losses were due to increased operating expenses for rebuilding RYU into an omni-channel business that is positioned to compete on a global scale. Others were the result of retail store closures and the sell-off of their obsolete inventory. The latter enabled RYU to reallocate capital to other areas of the business, including the Company's newly-launched wholesale division which has gained incredible traction in just the last two months. Now, 65% of RYU's on-hand inventory includes top-selling styles, so the Company believes that there is immense opportunity to overachieve in this area. To reach sustainable business operations, RYU will continue investing in wholesale and digital marketing strategies to build awareness, with the anticipated result of higher product demand and a positive return to shareholders.
"Our Company is still in transition, so our 2021 performance is not completely unexpected," says Cesare Fazari, CEO & Chairman of RYU. "While we wish the numbers were better, we know why they landed where they did. Some losses were in our control as part of a strategic restructuring of the Company, while some—like the pandemic—were not. As we rebuild and reinvest, we are also reducing payables and renegotiating contracts. I am admittedly disappointed with our 2021 profits, but also excited about our new direction. I believe the short-term losses accrued will ultimately lead to long-term growth and success."
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
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, such as statements regarding, but not limited to, RYU's future, long-term growth and success; rebuilding RYU into an omni-channel business positioned to compete on a global scale; the Company's belief about opportunities to overachieve in RYU's newly-launched wholesale division; and RYU's plans to continue to invest in wholesale and digital marketing to build awareness, resulting in higher product demand and a positive return to shareholders. 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, without limitation, adverse market conditions and such other factors beyond the control of the Company and which are more fully described in the Company's annual and quarterly management's discussion and analysis and other filings made by the Company with Canadian securities regulatory authorities under the Company's profile at www.sedar.com. 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.
Neither 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.
SOURCE RYU Apparel Inc.
RYU APPAREL INC., Cesare Fazari, Chairman & Chief Executive Officer, +1 (604) 235-2880; Corporate Communications, Anna Brazier, +1 (844) 535-2880, [email protected], www.ryu.com
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