KETCHUM, Idaho (BRAIN) — Clothing brand Club Ride is reporting sales of $1.7 million last year, a 119 percent increase over 2012, when the company's net sales were $779,000.
The privately held company voluntarily publishes its sales figures.
The company's final quarter of 2013 saw a sales increase of 55 percent over the prior year. Club Ride said a significant portion of the growth at the end of the year was a result of Club Ride’s first Fall-Winter clothing line. Gross margins for the quarter also improved to 42.9 percent from 2012’s fourth quarter gross margin of 8.7 percent, which was attributed to improved 2014 product manufacturing costs, introduction of the Fall-Winter line and decreased close-out sales. On an annual basis, 2013 gross margins were 37 percent versus 29.8 percent for 2012.
Club Ride said it continues to use a term loan from Wells Fargo Bank to meet cash flow requirements. Also in the fourth quarter Royal Street Investment & Innovation, LLC invested $1 million in capital in Club Ride.
During the fourth quarter, Club Ride opened its 750th retail location in North America; most of those are independent bike retailers. Consumer direct sales through the Club Ride website grew by 80 percent last year and international sales expanded from the existing markets of Canada, Japan, Brazil and Indonesia to new markets in Mexico, Norway, United Kingdom, Peru, Australia and Argentina.
Last month, the company introduced its 2014/2015 Fall-Winter line to retailers, with deliveries projected to begin in August.
“With these results, we now have considerable momentum in the market. Our goal is to be the leading casual-technical cycling apparel brand in North America," said CEO Scott Montgomery. "As this trend continues to grow, we want to eventually become the leading brand in this segment of the cycling industry worldwide.”
“For the first time in modern history, bicycles out-sold cars in Europe. There is an increasing global awareness of the effects of global warming, overcrowded roads and expanding waistlines. These issues can partially be solved with the use of bicycles for recreation and transportation. Certainly this trend is in the early stages of development, however, we are well-positioned and will continue to aggressively develop and push bicycling as a lifestyle.”