Athleisure Popularity has Legs, Leaving High Fashion in the Dust

NEW YORK, October 16, 2018 /PRNewswire/ --

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Makers of urban athletic wear or 'athleisure' are winning market share and growing profits as consumers dump major fast fashion brands. Companies such as Respect Your Universe, or RYU Apparel Inc. (TSX-V: RYU) (OTC: RYPPF) are serving a growing desire among Gen X and Millennials to wear athletic-inspired clothing that crosses over into the casual wear category. Under Armour (NYSE:UA) has been adapting its product lines to the growing athleisure trend by featuring star athletes such as Steph Curry to promote the company's new Threadborne line, although the move was not appreciated by the market and the stock price reflected it pretty clearly. The death of fast fashion is a major challenge to the survival of established retail players such as Foot Locker Inc. (NYSE: FL) and Skechers (NYSE: SKX) who have previously thrived on fast fashion models. Conglomerate PVH Corp. (NYSE: PVH) is trying to keep up with these sweeping changes through its designer labels such as Calvin Klein and Tommy Hilfiger.  

Major retail brands such as Hennes & Mauritz AB (H&M) and Macy's Inc. have been forced to shut down stores and cut prices this year to shift unsold inventory reaching into the billions of dollars. The industry has labelled the trend the "death of retail", spelling the end of a profitable spell for companies that embraced fashion trends with high-volume, low-cost products and high inventory turns.

The Death Of Fast Fashion  

Major fashion retailers are losing customers to nimble athleisure brands such as RYU Apparel Inc. (TSX.V:RYU) (OTCQB:RYPPF) who are winning over consumers with high-quality sports apparel that can also be worn as casual wear even at the office. RYU, short for Respect Your Universe, charges fair prices for its models and achieves higher margins, resulting in fewer inventory issues than fast fashion brands like H&M or Zara. RYU prices are highly competitive when compared to established brands like Lululemon or the top lines of Nike, such as NikeLab, Nike Tech Pack, and Adidas Originals.