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RYU Apparel Reports Second Quarter 2019 Results, Highlighting 31% Revenue Increase

VANCOUVER , Aug. 27, 2019 /CNW/ - RYU Apparel Inc. (RYU.V) ("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.





Three months ended

Six months ended


June 30,

June 30,


(unaudited)

(unaudited)

In Canadian dollars

2019

2018

2019

2018

Revenue

$1,501,547

$1,142,572

$2,711,413

$2,050,487

Gross profit

$735,043

$603,691

$1,268,788

$1,023,581

Gross profit %

49%

53%

47%

50%

 

"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 :


  • The Company closed non-brokered private placements on February 12 th, February 28 th, March 28 th, May 17 th and June 6 th, 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 

About RYU
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 

On Behalf of the Board

RYU APPAREL INC.
" Marcello Leone "
Marcello Leone , CEO, President and Chairman of the Board
Tel: 604-235-2880

Neither the 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.

This news release contains forward-looking information that involve 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 the Company. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including the ability of the company to finance operations, the ability of the management team to execute on its business plan, risks in the apparel industry in general, and delays and risks associated with renovating and opening new store locations. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information 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, the Company does not intend to update these forward-looking statements.

Cision

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SOURCE RYU Apparel Inc.


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