RYU Apparel Inc V.RYU.H

Similarities to kit and ace's failed expansion plan

[athleticsguy]

I own a handful of RYU shares, a daily duffle bag and will be picking up the waistbag soon but unfortunately i see RYU following in kit and ace's footsteps. RYU hasnt given themselves enough time to build brand equity before launching an expansion strategy. No one knows who/what RYU is and how they are different/better than the incumbents and as a result they havent given the consumer a reason to pick RYU over the other brands. Instead of focusing on building the brand they've gone on a massive capital intensive expansion strategy which has created a Cash burn vs. Sales increase race that they are losing. I can see a scenario where they are left with 1 to 2 stores in vancouver + their online store (just like kit and ace) within a few years...