KUIU has grown at an incredible pace over the past 36 months. This growth has forced production overseas to increase our manufacturing capacity to keep up with demand. To better cope with our direct to consumer sales model, I developed a vertical manufacturing process with Toray and The Merino Company. After 18 months, the vertical program is catching up with the demand resulting in KUIU carrying the highest inventory levels since its launch in 2011.
Our growth has given me the opportunity to renegotiate better pricing on several of our key, high volume styles in 2014 which has translated into a significant price reduction on fabric, trims and manufacturing. After receiving these discounts, I did not feel it was right to maintain current pricing and increase our margins. Instead, I have chosen to pass these savings onto you by lowering the prices of these key items:
I have had people suggest we should raise our prices because we cannot keep up with demand. Going against these suggestions, I believe lowering prices is the right decision for our customers and what this brand stands for.
I want to thank you all for the continued support for KUIU and recommending our products to others. It has given us the opportunity to continue to innovate and now bring industry-leading products to you at even lower prices. I cannot tell you how much I appreciate it.