RYU Apparel Inc. (OTC:RYPPF) is an award-winning apparel brand focused on creating high quality, multi-purpose clothing and accessories for performance and everyday wear. With the company focused on growing its e-commerce business, RYPPF is positioning itself for financial growth as its digital presence develops. Based on this, RYPPF could be one of the best penny stocks for 2022 as the company launches its three-pronged wholesale strategy targeting off price, national chains, and specialty retailers.
RYPPF Stock News
Originally an MMA equipment brand, RYPPF shifted its brand to cater to the needs of performance and lifestyle customers. This business shift was triggered when the company noticed that the male athletic apparel market was extremely underserved while the female athletic apparel market was mainly focused on yoga apparel. Thanks to this, RYPPF was able to capitalize on the growing active sportswear market which is expected to reach $210 billion by 2025. With this in mind, RYPPF has the potential to secure significant market share as it already has a large and loyal customer base. In light of this, RYPPF is emerging as one of the best penny stocks for 2022 as the company has the potential to further grow in its market.
RYPPF has already become the apparel provider for Canada’s Skateboard team and will become a presenting partner of the Keep Pushing Series scheduled to launch on CBC. As the presenting sponsor, RYPPF will be able to feature its products throughout the series – increasing its brand awareness. With the series set to launch this year, RYPPF could be one of the best penny stocks for 2022 in anticipation of this publicity.
However, the company’s business was severely impacted by the Covid-19 pandemic which led RYPPF to shift its business focus to e-commerce. This will allow RYPPF to capture consumers’ shift to online shopping and avoid the threat of store closures in the future.
In preparation, RYPPF has already closed its retail locations and currently has only one retail location in operation. This will help the company reduce overhead costs, but RYPPF will continue to attract in-store shoppers by marketing its goods to consumers through brick and mortar store partnerships in the US and elsewhere.
The company has already launched its sleek new e-commerce site for its high-end performance wear and accessories. But now the company is looking to better integrate its e-commerce and retail divisions since 60% of online sales are influenced by retail stores. With this in mind, RYPPF has been building out its team to facilitate its shift to e-commerce.
For this reason, RYPPF appointed Zachary Beers as its new marketing director. Over the course of his more than 10 year career, Beers managed over 50 marketing campaigns and launched more than 20 retail stores. Beers will be a valuable asset for the company since his expertise was responsible for Arc’teryx’s incredible increase in revenues from $1 million to $500 million.
In his new role with RYPPF, Beers will manage online and offline efforts to grow the company’s e-commerce platform to increase synergy between online and offline shopping. With this notable addition to RYPPF’s team, the company could be poised to significantly increase its revenues in the near future.
RYPPF has also hired DJM Sales Consulting to oversee the company’s wholesale strategy and lead global sales. For 25 years, DJM has been responsible for the successful sales strategies of global companies like Red Bull North America, and TenTree. DJM was also responsible for a $35 million increase in revenues as a consultant for SAXX underwear where it created a global wholesale division.
Now, DJM will apply its years of experience to RYPPF as it implements a new plan for digital sales. It will also work to increase the company’s brand awareness to gain access to different groups of consumers. By hiring DJM, RYPPF was also able to retain Caraway & Company as the company’s exclusive wholesale representative in the US.
This means that the same representative for Mountain Hardwear, Ugg, and other emerging brands will promote and wholesale RYPPF’s products to retailers across the nation. Caraway will also advise RYPPF on merchandising, branding, and retail activations in order to expand its customer base and increase its popularity. This will likely be integrated with RYPPF’s three main wholesale channels to rapidly scale via traditional retail, clearance retail, and drop-shipping partners.
With these strategic changes already underway, RYPPF has shared that new accounts are expected to be revealed by this fall and recently reported on its operational success so far. Commenting on the company’s recent achievements, RYPPF’s CEO Cesare Fazari said that these achievements “have already positioned us for what I believe will become explosive growth for the company and leading us into cutting-edge territory with a revolution of first-to-market technology and experiences for fans, consumers, athletes, and more.” Fazari also added that RYPPF’s partnerships could lead to attractive acquisition opportunities in the future.
One of these partnerships is with Canada’s leading lifestyle retailer, Indigo (TSX: IDG) and it has also secured an exclusive marketing partnership with The Wall Trainer which makes total body workout machines. RYPPF is currently in discussions with the latter to “take the relationship to significant new heights”. In light of this, RYPPF could be one of the best penny stocks for 2022.
In addition to its partnership with the Canada Skateboard National Team, RYPPF has partnered with the NFL Alumni Academy and will soon announce several exclusive apparel partnerships including a deal with one of the highest grossing film franchises in history.
The company also emphasized that according to its ‘digital first’ business model, RYPPF would be working to establish itself in the Metaverse and Web3 space to secure its first-mover advantage. As the company’s COO shared, “We hope to be pioneers that set the precedents on how direct-to-consumer brands use blockchain, NFTs, Augmented Reality, and other emerging technologies and not simply follow others.”
Based on the company’s new personnel, its partnerships, and plans to expand beyond e-commerce, RPYYF could be one of the best penny stocks for 2022. Since it has already secured orders from several national retailers for it’s products, the company is expected to continue expanding across its digital and retail channels which could lead to astounding financial growth for this company.
RYPPF Stock Financials
According to the company’s annual report, RYPPF has CA$681 thousand cash on hand and inventory worth CA$1.8 million. In total its current assets amount to CA$2.9 million. Over the course of the year, RYPPF generated CA$1.27 million but its cost of sales exceeded its revenue contributing to a net loss of CA$3,807.
However, the company’s financials could improve according to COO Rob Blair who shared that the company’s “eCommerce revenues, transaction rate and average order value is anticipated at double- and triple-digit growth.”
According to RYPPF’s report on its financial success in Q1, the company has already generated CA$347,938 – a 75% increase from Q1 2021. This growth is in part due to a 49% increase in sales compared to Q1 2021. Meanwhile gross profit has increased and its lease obligations have already decreased with the closure of two of its retail locations.
Technical Analysis
Currently trading at $.0524, RYPPF has supports at .0471 and .0403. It also shows resistances at .0617 and .0697. The MAs had a golden cross in May, but the stock recently dropped below its 50 MA. Its support near .0471 will be a price level to watch for a rebound as well.
Considering the company’s list of upcoming catalysts and new approach to sales, RYPPF could be positioned to run on excellent news. While the stock has not fully recovered from the impacts of the pandemic on its business, RYPPF could see a resurgence considering its low float and plans for a potential acquisition.
Accumulation is strong and has been trending upwards for the past few months. However, the MACD recently turned bearish and the RSI is at 45 which indicates that the stock is approaching oversold territory. As is, RYPPF has an OS of 210 million and a float of 183 million.
RYPPF Stock Forecast
Given the company’s partnership with one of the highest grossing movie franchises of all time, RYPP is definitely a stock to watch for more news. It appears that the company is also considering an acquisition which could help facilitate its transition to e-commerce after supplementing its team with experienced individuals. Considering DJM Sales Consulting’s and Zachary Beers’ proven track record of success, its no surprise that RYPPF has already secured deals with several national retailers and is expecting double and triple-digit growth.
While the stock has been beaten down by the affects of the pandemic which cooled demand for athletic and performance wear products, RYPPF is in a good position for a rebound from these price levels. Given its operational success this quarter alone, RYPPF stock could be one of the best penny stocks for 2022.
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