- Prachi Singh |
RYU Apparel Inc. has reported revenue of 3,019,586 Canadian dollars (2,378,497 US dollars), for the year ended December 31, 2017, 121 percent higher than last year. The company also posted 46 percent rise in gross profit for the year. The company said, fourth quarter, its ninth consecutive quarter of increasing gross profit, included additional revenue from its new retail store locations in Park Royal South in West Vancouver, Queen St. West in Toronto, and Metrotown in Burnaby.
“We are pleased with this quarter and yearly results and the steady progress we are making in our strategic plan,” said Marcello Leone, RYU’s CEO in a statement, adding, “Moving forward, RYU remains focused and we have a solid road map in place to position the brand for success.”
RYU plans offline and online expansion in 2018
During the year RYU met its retail store expansion target of five open stores by the end of 2017. The company currently has five stores in operation and three under construction. In addition to the opening of Park Royal South on March 28, 2017 and Queen St. West in Toronto on September 19, 2017, management opened its first enclosed mall location at Metrotown in Burnaby on November 28, 2017. Ecommerce revenue grew 125 percent for the year against 2016. RYU achieved 17 percent of total revenue from e-commerce in 2017 and the company said, it is focused on a clear roadmap to achieve a 65:35 “bricks (65 percent) and clicks (35 percent)” business model by the year 2021.
The company also plans to go live with its new Ryu.com platform in the third quarter of 2018. RYU also secured its first USA retail store location in Williamsburg, in the New York City borough of Brooklyn. The store is also scheduled to open during the third quarter of 2018. For 2018, RYU’s expansion plan is to have eight stores by the end of 2018 and to achieve 100 percent year over year growth in retail revenue. Subsequent to year-end the company secured the leases to its second and third USA store locations in the state of California giving RYU exposure in New York City and Los Angeles. The three stores have targeted openings in the second and third quarters of 2018.
Highlights of Q4 and FY17 performance
Fourth quarter revenue increased 146 percent to 1,166,126 Canadian dollars (91,925,7 US dollars), driven by sales from five versus two retail stores and growth in e-commerce sales. Fourth quarter gross profit was 529,472 Canadian dollars (417,382 US dollars) compared with 214,336 Canadian dollars (168,961 US dollars) in the same period in fiscal 2016, an increase of 147 percent. Gross profit percentage of 45 percent was achieved in the quarter, in line with 2016.
Fourth quarter comprehensive loss was 2,553,196 Canadian dollars (2,013,092 US dollars) compared with 1,781,197 Canadian dollars (1,404,402 US dollars in the same period in fiscal 2016.
The company added that revenue in 2017 was adversely affected following a challenging period of approximately six months during which RYU experienced shortages in styles and sizes. Comprehensive loss for the year was 9,200,856 Canadian dollars (7,253,586 US dollars) compared with 5,621,662 Canadian dollars (4,431,893 US dollars) in fiscal 2016, 64 percent higher over 2016.