Vancouver, BC – August 27, 2019 – RYU Apparel Inc. (TSXV: RYU) (“RYU” or the “Company”), creators of urban athletic apparel, is pleased to report its financial results for the three and six months ended June 30, 2019. Revenue in the second quarter of 2019 was $1,501,547, 31% higher than the same period in 2018, and revenue in the first six months of 2019 was $2,711,413, 32% higher than the same period in 2018. RYU’s financial results continue to be encouraging with consistent sales growth in 2019 and a 49% gross profit margin for the quarter.
“We are pleased that second quarter results are consistent with our Phase II strategy of creating brand awareness, continued revenue growth, streamlining operating efficiencies and reduction of costs,” said Marcello Leone, CEO. “We are pleased to have achieved our fourteenth consecutive quarter of revenue growth. We continue to focus on achieving greater productivity from our retail locations in all four major markets as well as growing our digital marketing presence and e-commerce business globally to 30% of our overall business by 2022.”
The Company also saw continued reduction of its total operating expenses by $803,026 or 19% in the current quarter compared to the same period in 2018. Effective cost controls remain one of the top priorities of the Leadership team. The Company expects continued reduction of costs and improved efficiencies for the second half of 2019.
During the six months ended June 30, 2019, the Company achieved the following milestones:
- RYU grew to nine retail locations by June 30, 2019 with the opening of a new retail location in Newport Beach, California during the first quarter. RYU has prominent exposure in Vancouver, Toronto, New York City and Southern California, the most important urban centers on both coasts of Canada and the USA. The Company expects to achieve meaningful year over year growth in overall revenues by the end of the year.
- As a result of RYU’s continued investment, growth, brand recognition and customer experience during the quarter, the Company won the following awards in May 2019:
- Startup Canada Global Entrepreneurship of The Year Award for the region of British Columbia which celebrates and recognizes companies that demonstrate innovation, excellence, outstanding achievement, and impact in advancing entrepreneurship in Canada
- The prestigious award of “Best Customer Experience Initiative” presented at the World Retail Conference held at the National Maritime Museum in Amsterdam – The Netherlands.
- The Company closed non-brokered private placements on February 12th , February 28th , March 28th , May 17th and June 6th , raising gross proceeds of $2,863,257, $779,900, $637,447, $1,869,772 and $249,500 respectively.
Readers are encouraged to review the Company’s condensed consolidated interim financial statements in their entirety, including the notes thereto, and corresponding MD&A on SEDAR. Full details of the Company’s financial performance can be obtained by viewing the annual consolidated financial statements and corresponding MD&A available on SEDAR.
For regular updates on RYU Apparel visit: http://ryu.com
Respect Your Universe is an award winning urban athletic apparel and accessories brand engineered for the fitness, performance and lifestyle of athletically minded men and women. Innovatively designed without compromise and tailored for fit, comfort, and durability, RYU exists to facilitate human performance. For more information, visit: http://ryu.com