PORTLAND, Ore., Aug. 26, 2013 /PRNewswire/ -- RESPECT YOUR
UNIVERSE, INC. (TSX VENTURE: RYU) (OTCQB: RYUN) (RYU)
announced that on August 13, 2013,
RYU filed its second quarter Form 10-Q for the quarter ended
June 30, 2013. Here are some of
the financial highlights for the second quarter 2013:
- Revenues increased by 175% to $295,912 for the three months ended June 30, 2013, as compared with $107,522 for the same period in 2012. This was
primarily due to the opening of RYU's first retail store in
Las Vegas in October 2012 which generated over $110,000 in additional revenues over the
comparable period in 2012. Wholesale revenues also contributed an
increase of $91,000 in the three
months ended June 30, 2013 primarily
from a sale of closeout products which did not occur in the
comparable period in 2012.
- Net loss decreased by 53% to $1,142,468 for the three months ended
June 30, 2013 compared with
$2,435,797 for the same period in
2012. Several factor contributed to the significant improvement in
net loss including margin contribution from higher sales of
$60,186 over the comparable period in
2012, and a decrease of $1,233,143 in
operating expenses over the comparable period in 2012.
"We are very pleased with the directional results in this
quarter," said Craig Brod, RYU's
Chief Executive Officer. "Our store in Las Vegas continues a positive sales trend
which affirms our strategy of increased value to our customer and
provides clearer direction for future revenue growth. I am
very excited about the repositioning of our brand to reach larger
consumer markets and these results in Las
Vegas help affirm our growth strategy. We anticipate
next steps to include opening of pop-up locations to further gain
marketplace insight which will provide the basis to develop an
expanded retail store expansion strategy. We believe these
favorable retail results will also benefit our other sales channels
including a redesigned web site scheduled to be launched before the
end of 2013."
"Expense reduction in the quarter was significant and the
primary reason for the decreased net loss," said Jim Nowodworski, RYU's Chief Financial
Officer. "Expiration of a marketing contract, termination of
a product design contract and decreased investor relations expenses
were the primary factors. These services were not eliminated
for the sole purpose of expense control, but were replaced by more
cost effective and brand aligned services positioning RYU for
future long-term growth."
Mr. Nowodworski continued, "We intend to continue emphasizing
the effective use of our financial resources into the next
quarter. To this end, management undertook key initiatives to
invest in the growth of RYU by: hiring two executive managers in
sales, merchandising and product development; reviewing retail
sites for potential expansion; placing inventory for mark-down and
sales on additional web sites; completing a contract with
GURU-ONLINE (an award winning social media company located in
Hong Kong to increase brand
recognition, traffic and sales of RYU merchandise in Asia); and signing a non-binding memorandum of
understanding with Luxey International Holdings Limited of
Hong Kong (a retail focused
apparel group with physical stores and web-based presence
headquartered in Hong Kong to
develop a strategic investment and marketing relationship)."
About Respect Your Universe, Inc.
RYU is a vertically integrated, active lifestyle apparel brand
focused on the needs of individuals and athletes alike. The men's
and women's performance and active wear lines are specially
designed for people who love to move, feel comfortable and look
great. Crafted from organic and/or recycled materials, our products
are also designed to help nurture the environment.
RYU encourages all investors and interested parties to visit
www.ryu.com for additional information.
On Behalf of the Board
RESPECT YOUR UNIVERSE, INC.
/s/ Craig
Brod
Craig Brod
CEO and Director
Statements regarding future growth, growth strategy, the
intention to open pop-up locations to develop an expanded retail
strategy and how this may benefit RYU's other sales channels, and
the intention to redesign RYU's web site before the end of 2013 are
forward-looking statements, which are subject to risks and
uncertainties that may cause the actual results, performance or
achievements of RYU to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These risks and uncertainties
include, among others: an economic downturn or economic uncertainty
in RYU's key markets; increasing product costs and decreasing
selling prices; adverse changes with respect to consumer
preferences; inability to develop and introduce new products;
inability to manage its growth and the increased complexity of its
business; fluctuating costs of raw materials; RYU's highly
competitive market and increasing competition; inability to
successfully open new store locations in a timely manner; and
inability to increase and maintain the value and reputation of its
brand. Except as required by law, RYU undertakes no
responsibility to update any of the statements contained in this
news release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Respect Your Universe, Inc.