We are investigating Ruhnn Holding Limited (RUHN) (“Ruhnn” or the “Company”) for potential violations of the federal securities laws.
On or around April 3, 2019, Ruhnn conducted its initial public offering (“IPO”), selling approximately 10 million American depositary shares (“ADSs”) priced at $12.50 per share. Then, on June 4, 2019, Ruhn reported its fiscal year and fourth quarter 2019 financial results. The Company disclosed, among other information, that as of March 31, 2019, Ruhnn had only 56 stores in operation, indicating that it had closed nearly 40 of the 91 stores that the Company had reported operating in the registration statement issued in connection with its IPO. In addition, the Company reported that its revenue streams had declined 80 basis points year over year, reflecting its failure to approach profitability. Since the IPO, Ruhnn’s ADS price has closed as low as $3.10 per share, representing a decline of more than 75% from the IPO price.