Respect Your Universe, Inc. Reports 175% Sales Increase And 53% Net Loss Reduction For Second Quarter Ended June 30, 2013
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.
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