(1) Our omnichannel expansion plan is to have nine stores open by the end of 2018 and to continue to execute our digital strategy. We continue to build the brand to have a 70:30 “bricks and clicks” business model by the year 2022.
- New ecommerce platform and design target launch date: Q4 2018.
- Existing Stores:
Vancouver, BC – West 4th Avenue (Flagship);
Vancouver, BC – Thurlow Street West;
Vancouver, BC – Park Royal South;
Toronto, ON – Queen Street West;
Burnaby, BC – Metropolis at Metrotown;
Venice, CA – Abbot Kinney Boulevard.
- New Stores Under Construction:
Brooklyn, NY – Williamsburg, Opening Date/Target: Q4 2018.
Newport Beach, CA – Fashion Island Shopping, Opening Date/Target: Q4 2018.
Center Toronto, ON – Sherway Gardens Shopping Centre, Opening Date/Target: Q4 2018.
(2) Awards and Recognition:
During the nine months ended September 30, 2018, we were selected as a finalist for the World Retail Awards in two categories:
1. Retail Start Up of the Year
2. Social Media Campaign of the Year (#RYUOneMoreRep).
We were honoured that RYU was one of only two Canadian companies that qualified as finalists among many global retailers across all the World Retail Awards categories. Launched in 2007, the World Retail Awards have been recognizing the very best retailers and retail initiatives across a range of categories for 10 years.
(3) Outlook for 2018:
The principal business objective that we expect to accomplish in 2018 is to continue to build the RYU brand and deliver our products to a larger audience through an expanded geographic presence. This will be accomplished by continued improvements to our ecommerce platform and by opening three additional retail stores located in Brooklyn, NY, Newport Beach, CA, and Toronto, ON with targeted openings in the fourth quarter of 2018. Construction is underway at all store locations.
The followings are some of the Operations highlights: (1) Revenue for the nine months ended September 30, 2018 was $3,267,121 77% higher than revenue of $1,853,460 during the nine months ended September 30, 2017. Our financial results have been encouraging with continued sales growth in 2018 and generating a positive 53% gross profit percentage.
(2) Ecommerce: During the nine months ended September 30, 2018 ecommerce revenue represented 14% of total revenue and our efforts yielded a 34% growth in ecommerce revenue against the third quarter of 2017. Yeartodate, ecommerce revenue is up 53% vs the same period of 2017. Significant investment is going into our ecommerce and omnichannel strategies and we have seen improvements in traffic yielding increases in local and international orders.
(3) Retail stores: During the second quarter of 2018 we secured the lease to our second Toronto location at Sherway Gardens Shopping Centre. Sherway Gardens is a solid and powerful shopping destination at the intersection of major highways connecting the western side of the Greater Toronto Area. Attracting millions of visitors annually it offers a wide variety of shopping opportunities and includes some of the most prominent retail brands in the world. The new RYU retail location will be in the North Expansion of the shopping centre that will also include Tesla, Canada Goose, Sandro and Maje, as well as other top tier apparel and lifestyle brands.
(4) RYU’s cash balance as of September 30, 2018 was $3,913,019 compared to $466,809 as of December 31, 2017. As of September 30, 2018, RYU had current assets of $10,219,207, current liabilities of $1,087,218 and working capital of $9,131,989 compared to a working capital of $2,275,781 as of December 31, 2017.
Disclaimer: this is only my DD/readings. It is NOT any investment advice. Do your own DD.