Growth nearly doubles 2022 revenues of $4.46 million propelled by growth at Orgad and
the Naiz Fit and MySizeID AI-driven sizing solutions
AIRPORT CITY, Israel ,
Oct. 30,
2023 /PRNewswire/ -- MySize, Inc. (NASDAQ: MYSZ)
(TASE: MYSZ.TA) ("MySize" or the "Company"), an omnichannel
e-commerce platform and provider of AI-driven measurement solutions
to drive revenue growth and reduce costs for its business clients,
today issued a shareholder update from its Founder and CEO,
Ronen Luzon.
Dear MySize Partners and Shareholders,
Before providing a business update on MySize, first, I must
address the unprecedented October 7
attack on Israel by the terrorist
group Hamas. While this tragedy involving innocent people has
impacted the lives of our employees, our families, and our friends,
we at MySize are safe and we remain stronger than ever. Our
thoughts and prayers are with those who have lost loved ones and
those who are still in danger.
MySize continues business as usual with little effect on our
operations and financial results so far. This is attributable to
our global footprint and our Naiz Fit offices in Spain which has become a hub for our sizing
solutions business. During the second quarter, Orgad made a
strategic shift to utilizing Fulfillment by Amazon (FBA) rather
than fulfilling directly. Inventory is now maintained and orders
are shipped from regional Amazon warehouses, thereby reducing
exposure to inventory risk and contributing to operating
efficiencies.
The integration of Naiz Fit and Orgad has endowed MySize with
multiple revenue streams, reinforcing our standing as a frontrunner
in the fashion-tech industry and as a notable consolidator of
innovative sizing solutions. We've expanded our brand, made key
acquisitions, and substantially increased revenues, the
cornerstones of building a strong and valuable company for the
future.
12-Month Revenue Expected to be Approximately $8 Million
In 2022, we made two strategic acquisitions, Naiz Fit and Orgad,
which contributed to a 33-fold surge in revenue for us over the
prior year. For the 12 months ended December
31, 2022, MySize reported revenue of $4,459,000 compared to $131,000 for fiscal 2021. $4,132,000 of our total 2022 revenue came from
Orgad's operations commencing on February 7,
2022, the date Orgad's acquisition closed. Revenues from
Naiz Fit were recorded as of October 11,
2022, the date of the closing of the Naiz Fit acquisition.
While we reported revenues of approximately $2 million during the first half of 2023 and
previous revenue guidance of between $9 to $10 million
for 2023, based on the current revenue run rate and upcoming
holiday shopping season, we expect approximately $8 million in revenues for the 12 months ended
December 31, 2023 bringing us closer
to cash-flow positive. We expect to report third quarter results on
November 15, 2023.
MySize AI-driven Solutions: 5 Million Users and 18 Million
Purchases
Our patented MySizeID and Naiz Fit AI-driven sizing technologies
provide solutions for online and brick and mortar apparel shoppers.
These solutions play a pivotal role in mitigating the issue of
size-related returns, which are estimated to constitute 70% of
online return cases and cost e-commerce retailers $600 billion every year.[i] MySizeID and NaizFit
facilitate the generation of personalized size recommendations,
matching individual consumers with the garments of specific
retailers. This technology is underpinned by MySize's intricate
proprietary algorithms, fueled by diverse databases.
MySize has emerged as a distinguished provider of AI-driven
solutions within the fashion and retail sector as it bolsters
revenue growth and operational cost reduction for our growing
customer base which includes major brands such as Levi's, Speedo,
Dockers, Nautica, Perry Ellis,
Diesel, Moschino, Natura, 7 For Mankind, Salsa Jeans, La Garrocha,
Harper & Neyer, Rotholz, Desigual, and over 1,000 more great
brands from around the world. The numbers prove why so many brands
are turning to MySize to improve their economics and customer
experience. A recent case study with one of our customers,
LaGarrocha, found that customers on their ecommence site engaging
with Naiz Fit exhibited a 127% higher likelihood of completing a
purchase compared to those who did not employ our sizing tool.
After acquiring Naiz Fit, one of our competitors, at the end of
2022, Mysize is now reaping the benefits of Naiz Fit's
software-as-a-service technology solutions. The initial acquisition
had an immediate impact on our revenues and provided MySize with a
high-profile European customer base. Since much of the heavy
lifting has been done, MySize is beginning to see tremendous
results as the integration of the companies' sizing solutions
enables us to achieve cost efficiencies in sales and marketing and
provide fashion retailers with unmatched sizing technology.
I am particularly proud of the fact that 5 million people are
using Naiz Fit and MySizeID worldwide to reduce size related
apparel returns by up to 65%. To date, Naiz Fit and MySizeID have
made more than 35 million size recommendations and about 18 million
items have been purchased using MySizeID and Naiz Fit through a
total of more than 7 million orders. Not only do these numbers have
a profound impact on carbon footprint reduction, they show
increasing demand for our products.
Orgad: Major Revenue Driver
After acquiring Orgad, an omnichannel e-commerce platform, in
2022, MySize has been expanding its business to e-commerce sales,
since the Orgad team has built a strong business as a direct seller
of clothing and footwear globally. Orgad currently manages more
than 1,000 SKUs, mainly in fashion, apparel, and shoes, and is
ready to expand into tens of thousands of SKUs. By using Amazon
FBA, Orgad has reduced inventory risk and improved operating
efficiencies.
MySize Industry Accolades: Award Winning Products
As the demand for our products increases, MySize is becoming
better known in the industries our products serve. In recent
months, along with our partner Etisalat UAE, we presented our
SmartMirror at GITEX GLOBAL, the largest tech and startup show in
the world. The MySizeID FirstLook Smart Mirror seamlessly fits into
any retail environment, whether in the fitting rooms (version with
no camera) or other high-traffic, strategic locations. FirstLook
Smart Mirror includes a 3D "Try-it-on" interactive avatar
experience, personalized and highly accurate size recommendations
by MySizeID, third-party POS systems integration, styling
recommendations, and a contactless "select and collect" at the
register feature.
Naiz Fit took part at the Top of Tech event in Milano, the capital of Italian fashion, by
FASHION Magazine as well as LogiCommerce Connect in Barcelona to give a workshop about MySize's
SmartCatalogue together with our customer Desigual. Our
SmartCatolague solves sizing problems before they arise by helping
manufacturers detect hidden size and fit challenges before a
product is launched. SmartCatalogue empowers brand design teams by
collecting, organizing, and analyzing real-time customer sizing
data to optimize a brand's product portfolio and inventory
decisions. In August, our Naiz Fit online apparel sizing solution
was chosen as one of the best ecommerce tools of the year by
Marketing4ecommmerce, the leading media outlet for ecommerce and
marketing in Spain. Less than two
months later, Naiz Fit received the "Agile Customer Journey"
innovation award at Paris Retail Week 2023, one of the most
significant events in the French retail sector attended by 20,000
professionals.
In Summary
I'm highly optimistic about MySize in the near and long term.
Our growing consumer user base, now over 5 million, the top brands
in the world adopting our sizing solutions, robust growth at Orgad,
and award winning products all put our company in a stronger
position than ever.
Sincerely,
Ronen Luzon
MySize CEO & Founder
About MySize Inc.
MySize, Inc. (Nasdaq: MYSZ) (TASE: MYSZ.TA) is an omnichannel
e-commerce platform and provider of AI-driven measurement
solutions, including MySizeID and recently acquired Naiz Fit to
drive revenue growth and reduce costs for its business clients.
Orgad, its online retailer platform, has expertise in e-commerce,
supply chain, and technology, operating as a third-party seller on
Amazon.com and other sites. MySize recently launched FirstLook
Smart Mirror, a mirror-like touch display that provides in-store
customers with an enhanced shopping experience and contactless
checkout. FirstLook Smart Mirror extends MySize's reach into
physical stores and is expected to contribute to revenues through
unit sales and recurring service fees.
MySize has developed a unique measurement technology based on
sophisticated algorithms and cutting-edge technology with broad
applications, including the apparel, e-commerce, DIY, shipping, and
parcel delivery industries. This proprietary measurement technology
is driven by several algorithms that are able to calculate and
record measurements in a variety of novel ways. To learn more about
MySize, please visit our website: www.mysizeid.com.
We routinely post information that may be important to investors
in the Investor Relations section of our website. Follow us
on Facebook, LinkedIn, Instagram,
and X (formerly Twitter).
Please click here for a demonstration of how MySizeID
provides a full sizing solution for the retail industry.
To learn more about MySize and for additional information,
please visit: our website: www.mysizeid.com.
Forward-looking Statements
This press release contains certain forward-looking statements
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, including statements
related to the acquisition, expected revenues, and the expected
closing of the acquisition. These statements are identified by the
use of the words "could," "believe," "anticipate," "intend,"
"estimate," "expect," "may," "continue," "predict," "potential,"
"project" and similar expressions that are intended to identify
forward-looking statements. All forward-looking statements speak
only as of the date of this press release. You should not place
undue reliance on these forward-looking statements. Although we
believe that our plans, objectives, expectations and intentions
reflected in or suggested by the forward-looking statements are
reasonable, we can give no assurance that these plans, objectives,
expectations or intentions will be achieved. Forward-looking
statements involve significant risks and uncertainties (some of
which are beyond our control) and assumptions that could cause
actual results to differ materially from historical experience and
present expectations or projections. Actual results may differ
materially from those in the forward-looking statements and the
trading price for our common stock may fluctuate significantly.
Forward-looking statements also are affected by the risk factors
described in the Company's filings with the U.S. Securities and
Exchange Commission. Except as required by law, we undertake no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Investor Contacts:
Or Kles, CFO
ir@mysizeid.com
[i]
https://www.retail-insight-network.com/news/returns-cost-e-commerce-retailers-600bn-every-year/
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SOURCE My Size Inc.