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RYU Apparel (OTCMKTS:RYPPF) (TSXV:RYU) Shift Focus To Its Digital Ecommerce Business: Stock Down 15% In a Week

Ash K , , , , , , , ,

The past week has not been particularly great for investors in RYU Apparel Inc as the company’s stock took an almighty beating and declined by as much as 15% during the period. It should be noted that RYU Apparel (OTCMKTS:RYPPF) (TSXV:RYU) is an award winning player in the urban athletic apparel segment.

Market Stats

On Friday, RYPPF stock ended flat at $0.0380 with more than 754K shares, compared to its average volume of 36K shares. The stock moved within a range of $0.0380 – 0.0380 after opening trading at $0.0434.

RYU Apparel Doubles Down on Ecommerce in 2022 Based on Strong Third and Fourth Quarter Digital Performance

Last week on February 11, the stock actually came into major focus after it announced that it was going to move its focus to its digital e-commerce operations. In addition to that, it was also announced that as many as two brick and mortar stores were going to be closed.

While it may be a move that could prove to be the right one eventually, the news about the closure of the two stores possibly came as a source of alarm for many investors. Hence, the news could not help in reviving the stock.

RYU Apparel noted that it came to the decision after having done a ‘holistic review’. In addition to that, the online sales in third and fourth quarter of 2021 had in fact been quite strong. It will be interesting to see if the tide turns for the stock this week or not.

Key Quote

According to COO Rob Blair, “The closing of these stores is made more difficult by the loss of excellent team members whose service, loyalty and ambassadorship we are deeply grateful for. With the continued shift to online shopping, our strategy as a digital-first company is expected to maximize the performance of our capital. I intend to follow this announcement with a comprehensive shareholder letter and strategy review next week.” 

Traders Corner

RYPPF stock is trading above the 20-Day and 50-Day Moving averages of $0.0418 and $0.0435 respectively. The stock is trading in the neutral zone with RSI stands at 40.