RYU Apparel Inc., creator of urban athletic apparel, reported sales of $114 million in the second quarter, 78 percent higher than the same period in 2017.

Revenue in the first six months of 2018 was $2.06 million, 85 percent higher than the same period in 2017. RYU’s financial results have been encouraging, with continued sales growth in 2018 and a 53 percent gross profit margin for the quarter.

 

“These results come at a very exciting time for RYU as we look forward to the opening of our first three stores in the U.S. and the launch of our new RYU.com website in the second half of 2018,” said Marcello Leone, CEO. “This is our tenth consecutive quarter of growth, and we are confident that we will meet our 2018 retail revenue target of 100 percent year-over-year growth,” added Mr. Leone.

During the six months ended June 30, 2018, the company achieved the following milestones:

  • The company addressed its cash requirements for the year, strengthened its balance sheet and created a solid foundation for growth.
  • The company was able to normalize its supply chain and invest strategically in its omni-channel retail and e-commerce platforms for growth.
  • RYU’s expansion plan is on target to have nine stores by the end of 2018 and to achieve 100 percent+ year-over-year growth in retail revenue. In the first half of 2018, the company began construction planning at its retail stores in Brooklyn, NY, and Newport Beach, CA, and construction was underway at its retail store in Venice, CA, which opened on August 2, 2018. The company also secured the lease to its second Toronto, Ontario location at Sherway Gardens Shopping Centre. This expansion gives RYU exposure in New York City and Los Angeles, the most important urban centers of both coasts of the United States, and a broader footprint in the largest urban center in Canada. As at June 30, 2018, all stores were under construction and had targeted openings in the third and fourth quarters of 2018.
  • The company significantly invested in world-class talent to design, innovate and expand its product categories for growth.
  • RYU secured new strategic wholesale accounts with Nordstrom, Equinox Canada, Rise by We and Steve Nash Fitness World & Sports Club that align with its brand value proposition.
  • RYU was selected as a finalist for the World Retail Awards in two categories: Retail Start Up of the Year and Social Media Campaign of the Year (#RYUOneMoreRep). The company was honoured to be one of only two Canadian companies that qualified as finalists at the World Retail Awards.The company’s new global advertising and branding campaign orchestrated by THRSXTY/Exposure, ‘#YourUniverse’, launched in August 2018 in conjunction with RYU’s first U.S. store opening in Venice, CA.
  • The company joined the Canaccord Genuity Opportunities for the Longer-Term Program. The COLTS Program is a capital markets initiative that will profile high growth and small-cap companies such as RYU.

Outlook for the Second Half of 2018

The company will see its business infrastructure come together through a series of IT integrations from the design stage of its products through to the end user experience.

The company is launching a more experiential e-commerce website in October and implementing a new point of sale system at all retail store locations in September. These investments enable scalable growth over the next several years.

The company is preparing to launch a number of new product categories over the next 12 to 18 months to complement RYU’s existing ‘hero’ and ‘core’ programs.