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."
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
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.