RYU Apparel Inc V.RYU.H

RE:RE:RE:How much revenue = no loss?

[athleticsguy]

Unfortunately it's basically what we've been saying for over a year now (i've forgotten the official time frame since it's been so long)... They went with the kit and ace model (build it and they will come strategy before the brand was strong enough) but their stores aren't generating enough sales growth to offset the incredible increase in expenses from expanding their b&m footprint.  RYU needs exponential sales growth or exponential expense reduction.  Exponential sales growth hasn't happened after expanding from 3 locations to 9 so it's time for exponential expense reduction.  With the share price being 2 to 3 cents I'm not sure how they are going to raise enough $ to keep this show going until the company is profitable.  They need to close down all underperforming stores (ie. Metrotown - it's a guarantee that this location is losing money, it was empty on black friday for crying out loud) to drastically reduce their expenses.  They should reduce their b&m footprint, spend all that money on building the brand, then come back to an expansion strategy in a few years (if it makes sense).  They have a great product but no brand.