RYU Apparel Inc V.RYU.H

RE:RE:RE:RE:RE:RE:RE:RE:RYU partners with Guesst to expand product offering

[gairvine]

     Wow chimeIn, you’re taking a kicking here. I’m going to come to your defence with some observations.  Management’s execution and follow through has been poor.  The Goop initiative...gone...Canuck’s initiative...gone...Yyoga...can’t find ryu mentioned on their site...Nordstrom...whoops.  You get my point.  We see constant reference to 30% increase in revenues, but this is a result of the opening of more stores which are all losing money. I’ve yet to see a breakdown of same store sales. The only comparable of any use is online sales, and the increases here have been modest.  
    And then there’s the issue of constant dilution of shares at lower share prices, repricing of warrants, lack of inventory, etc..
    And just to complete the picture, we have a CEO who I believe paid himself a 100k bonus on top of his 300k salary. Pretty crazy when you consider the market cap of the startup is 20 million.  Should I mention that he leases from his own company and the board is structured so that there is little oversight.
     Now as I write this I’m sitting here in my favourite pants (ryu) and my favourite hoodie (ethos), and as much as I personally like the product, the market has not embraced the brand. 
     Like you, chimeIn, I‘m disappointed. I don’t see the interests of management and shareholders aligning. Perhaps Mr. Leone was good running a reseller of internationally branded high end apparel, but perhaps this skill set is different from running a public company and developing a brand. I hope I’m wrong, but there are just too many red flags to have faith in this company. Regards