RYU Apparel Inc. reported revenue for the year ended December 31 was Canadian $1.27 million, 19 percent lower than revenue of C$1.57 million a year ago.
The net loss in the period came to C$10.0 million against a loss of C$1.9 million the prior year. Gross profit was a negative C$3.8 million against gross earnings of C$662,539.
RYU said in a statement the declines in sales and gross profit was mostly due to the Covid-19 pandemic and store closures. Other losses were the result of strategic decisions to rebuild the brand, including investments in e-commerce and the launch of its wholesale division. Results also include charges resulting from store closures and the sell-off of their obsolete inventory. RYU said that now, 65 percent of RYU’s on-hand inventory includes top-selling styles.
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 and chairman of RYU, in a statement. “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.”
