LXR REPORTS FINANCIAL RESULTS FOR Q4 AND FY 2021
Total and E-commerce Q4 Net Revenue Up 89% and 104%, Respectively
Record Gross Margin of 37% in Q4
Positive Adjusted EBITDA of $0.3 Million, or 4.6% of Total Q4 Net Revenue
Generated Free Cash Flow of $1.4 Million in Q4
Total FY 2021 Net Revenue Up 31% to $18 Million
E-commerce FY 2021 Net Revenue Up 141% to $10.6 Million
FY 2021 AOV Up 5% to $920
Total 2022 Net Revenue Target of $25 Million to $30 Million, Up 39% to 67%
MONTREAL, March 31, 2022 /CNW/ - LXRandCo, Inc. ("LXR" or the "Company") (TSX: LXR) (TSX: LXR.WT), a North American socially responsible, digital-first omni-channel retailer of authenticated pre-owned handbags and personal accessories, today reported its financial results for the fourth quarter and full year ended December 31, 2021 ("Q4 2021" and "FY 2021", respectively).
"If 2020 was our year of survival, in FY 2021 we overcame pandemic headwinds and successfully re-positioned our business into a digital-first led model, marking a year of transformation for the Company. Throughout the year, we tirelessly focused on growth, right-sized our expense base and made key investments in talent and e-commerce activities. In the fourth quarter of 2021, our year-long efforts paid off. Our Q4 2021 total net revenue increased 89%, e-commerce net revenue grew 104%, we delivered a record-high gross margin of 37% and we generated a positive adjusted EBITDA margin of nearly 5% of total net revenue. Also during the fourth quarter, we were free cash flow positive, which increased our ending cash balance to $3.7 million as compared to the $2.6 million we reported in the third quarter of the year." said Cam di Prata, the Company's CEO.
"While the adverse effects of the pandemic still linger across our markets, and the recent geo-political events in Europe give us cause for concern, we plan to leverage our existing momentum and pursue additional growth opportunities in 2022. In FY 2021 total net revenue was $18 million, up 31% from 2020. In 2022, it is our goal to grow total net revenue to between $25 million and $30 million, an increase of 39% to 67% as compared to FY 2021." added Cam di Prata.
Provided below are the financial highlights and a discussion of our financial results for the three and twelve–month periods ended December 31, 2021, which are to be read in conjunction with the Company's audited consolidated financial statements and the accompanying notes thereto for the fiscal year ended December 31, 2021, the Company's Management's Discussion and Analysis ("MD&A") for the period and the Company's Annual Information Form ("AIF") for the fiscal year ended December 31, 2021, all incorporated by reference herein. A copy of the Company's most recent financial statements and related notes, MD&A and AIF are available under the Company's profile on SEDAR at www.sedar.com.
- Total net revenue increased 89.1% to $6.4 million as compared to $3.4 million.
- E-commerce net revenue increased 103.6% to $3.5 million and e-commerce average order value ("AOV") increased 3.9% to $927 per transaction. E-commerce net revenue as a proportion of total net revenue ("E-commerce penetration") increased to 54.5% versus 50.6%.
- Retail net revenue was $2.9 million as compared to $1.7 million, an increase of 74.3%. At year-end we had a network of ten stores, of which eight were open, as compared to a network of ten stores in Q4 2020, with three in operation. As at March 31, 2022, all our ten stores were in operation.
- Gross margin increased to a record level 37.3% as compared to 32.7% due primarily to increased e-commerce activity in the period.
- Selling, general and administrative ("SG&A") expenses increased 16.0% to $2.6 million, or 40.3% of net revenue, as compared to $2.2 million, or 65.8% of net revenue.
- Adjusted Net Income (a non-IFRS measure) was $0.1 million as compared to an Adjusted Net Loss of $0.9 million. Q4 2021 Adjusted Net Income as a percent of total net revenue was 1.9%.
- We generated positive Adjusted EBITDA in Q4 2021. Adjusted EBITDA (a non-IFRS measure) was $0.3 million as compared to an Adjusted EBITDA Loss of $0.7 million. Q4 2021 Adjusted EBITDA as a percent of total net revenue was 4.6%.
- We generated positive Free Cash Flow in Q4 2021. Free Cash Flow (a non-IFRS measure) was $1.4 million as compared to negative Free Cash Flow of $0.6 million.
- Cash availability at the end of Q4 2021 totalled $3.7 million as compared to $7.3 million in Q4 2020 and $2.6 million in Q3 2021.
- Total net revenue increased 30.9% to $18.0 million from $13.8 million.
- E-commerce net revenue increased 141.1% to $10.6 million and e-commerce AOV increased 5.0% to $920 per transaction. E-commerce penetration increased to 58.6% versus 31.8%.
- Retail net revenue was $7.5 million as compared to $9.4 million, a decrease of 20.5%.
- Gross margin increased to 34.9% as compared to 31.3%.
- SG&A expenses decreased 21.1% to $8.2 million, or 45.3% of net revenue, as compared to $10.4 million, or 75.2% of net revenue in FY 2020.
- Adjusted Net Loss (a non-IFRS measure) improved to $2.2 million as compared to an Adjusted Net Loss of $4.5 million.
- Adjusted EBITDA (a non-IFRS measure) improved to a loss of $1.3 million as compared to an Adjusted EBITDA loss of $3.3 million.
- Free Cash Flow (a non-IFRS measure) was negative $3.6 million as compared to Free Cash Flow of negative $1.5 million.
On February 8, 2022 and March 10, 2022, the Company reported preliminary total and e-commerce monthly and LTM net revenue growth. Selected financial highlights include:
- For the month of January 2022, total net revenue was $1.0 million and e-commerce net revenue was $0.8 million, representing growth of 113% and 62%, respectively, as compared to January 2021.
- For the month of February 2022, total net revenue was $1.4 million and e-commerce net revenue was $1.1 million, representing growth of 140% and 135%, respectively, as compared to February 2021.
- For full-year 2022, the Company is targeting total net revenue of between $25.0 million and $30.0 million, an increase of 38% to 67% as compared to FY 2021.
Unless otherwise indicated, all amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Measures" further below. For a reconciliation of non-IFRS measures to their most directly comparable measure calculated in accordance with IFRS, see "Select Consolidated Financial Information" further below.
For the three-month period ended December 31, 2021, total net revenue increased 89.1% to $6.4 million from $3.4 million in Q4 2020. During this period, approximately 54.5% of our total net revenue was generated from e-commerce and 45.5% from retail activities (stores and wholesale channels combined), as compared to 50.6% and 49.4%, respectively, in Q4 2020. During this period, approximately 62.0% of our net revenue was generated in the U.S., with the balance coming from Canada, as compared to 70% from the U.S. in Q4 2020. This shift in revenue mix is explained by the loss in U.S. revenue from the U.S. Partner Bankruptcies in 2020, offset by a significant increase in our Canadian e-commerce activities.
In Q4 2021, Canadian and U.S. total net revenue grew 140% and 68%, respectively, as compared to Q4 2020.
In FY 2021 total net revenue increased 30 .9% to $18.0 million as compared to $13.8 million in FY 2020. During the year, approximately 58.6% of total net revenue was generated from e-commerce and 41.4% from retail activities, as compared to 31.8% and 68.2% in FY 2020. During this period, approximately 64.8% of our net revenue was generated in the U.S., with the balance coming from Canada, as compared to 80.3% coming from the U.S. in FY 2020. This shift in revenue mix is explained by the loss in U.S. revenue from the U.S. Partner Bankruptcies in 2020, offset by a significant increase in our Canadian e-commerce activities. In FY 2021, Canadian and U.S. total net revenue grew 133.5% and 5.7%, respectively, as compared to FY 2020.
E-commerce net revenue during Q4 2021 was $3.5 million, an increase of 103.6% compared to prior period. E-commerce penetration increased to 54.5% versus 50.6% in Q4 2020. AOV during the period was $927, an increase of 3.9% versus the comparable period last year.
E-commerce net revenue in FY 2021 was $10.6 million, an increase of 141.1% versus the prior year. During the year, e-commerce penetration increased to 58.6% versus 31.8% in FY 2020. AOV during the period was $920 an increase of 5.0% versus the comparable period last year.
Retail net revenue during Q4 2021 was $2.9 million, an increase of 74.3% compared to $1.7 million in Q4 2020. The increase reflects the partial recovery of our retail activities from the adverse economic impact of COVID-19 on customer foot traffic and store opening restrictions. Our store network consisted of ten stores, of which eight were open, compared to ten stores as at December 31, 2020, of which three were open. During Q4 2021, we did not open or permanently close any store locations compared to one temporary store closure in Q4-2020.
In FY 2021, retail net revenue decreased 20.5% to $7.5 million as compared to $9.4 million in FY 2020. The decrease in total net revenue primarily reflects the lingering adverse impact of COVID-19 on our retail activities, as well as the impact from store closures relating to the U.S. Partner Bankruptcies. During FY 2021, we did not open or permanently close any store locations, compared to 70 permanent store closures in FY 2020.
Gross profit in Q4 2021 increased 116% to $2.4 million as compared to $1.1 million in Q4 2020. The increase in gross profit is attributable to the increase in total net revenue, which grew 89.1% and to an increase in year-over-year AOV, which increased 3.9%. Gross margin in Q4 2021, came in at a record level 37.3% compared to 32.7% in Q4 2020, primarily due to a more profitable revenue mix made up of higher e-commerce sales which enjoy typically higher gross margin and to greater efficiencies in inventory management and product sourcing.
Gross profit in FY 2021 increased by 45.9% to $6.3 million as compared to $4.3 million in FY 2020. The increase in gross profit is primarily attributable to the increase in total net revenue, which grew 30.9% and to an increase in year-over-year AOV, which increased 5.0%. Gross margin in FY 2021 was 34.9% compared to 31.3% in FY 2020, primarily due to a more profitable revenue channel mix driven by greater growth in e-commerce sales which enjoy typically higher gross margin and to greater efficiencies in inventory management and product sourcing.
In Q4 2021, SG&A expenses increased by 16.0% to $2.6 million, compared to $2.2 million in Q4 2020. This net increase of $0.4 million in expense was primarily due to higher wages and salaries (i.e. higher headcount additions, which increased expenses 28% as compared to Q4 2020) and to higher marketing spend (which increased 57% as compared to Q4 2020). SG&A expenses include a gain of $163,272 related to the reversal of provisions taken on our European activities and realized upon the finalisation of closing procedures including the cancellation and deletion of these European entities (the "European provision").
Throughout FY 2021, we have proactively right-sized operations to reflect our new strategy and operating environment. In FY 2021, SG&A expenses decreased 21.1% to $8.2 million, compared to $10.4 million in FY 2020. This net decrease of $2.2 million in expense was primarily due to lower wages and salaries (which decreased 16% year over year) due to a reduced store network, lower stock-based compensation costs (down 26% from last year) and lower professional fees (down 43% from last year), offset by higher marketing spend (which increased 128% as compared to FY 2020).
Included in FY 2020 SG&A expense was $1.7 million in charges relating to the U.S. Partner Bankruptcies, (primarily bad debt and expenses relating to the write-down of store fixtures and store closures) and related payroll subsidies of $0.4 million). Included in FY 2021 SG&A expense was a $0.2 million gain on the European provision and related payroll subsidies of $0.2 million). Excluding these items, SG&A in FY 2021 would have decreased 5.4% as compared to FY 2020.
As a proportion of total net revenue, SG&A expenses decreased favorably to 45.3%, as compared to 75.2% of net revenue.
On December 31, 2021, we employed 62 people across our two office locations in Montreal, Canada and Tokyo, Japan and in our retail store network as compared to 42 employees on December 31, 2020. At the end of FY 2021, 42 employees were employed on a full-time basis as compared to 34 on December 31, 2020.
In Q4 2021, we reduced our Net Loss to $0.5 million from a net loss of $2.2 million in Q4 2020. This $1.7 million improvement was due primarily to higher total net revenue (which grew 89.1%) and record gross margins, offset by marginally higher SG&A expenses as compared to Q4 2020. In FY 2021, the Company's net loss improved by 62.0% to $2.9 million from a net loss of $7.7 million in the FY 2020. This $4.8 million improvement was primarily due to higher total net revenue (which grew 31%), strong gross margins, and lower SG&A expenses as compared to FY 2020.
In Q4 2021, we delivered Adjusted Net Income of $0.1 million as compared to an Adjusted Net Loss of $0.9 million in Q4 2020. Adjusted Net Income as a percent of total net revenue was 1.9%. This $1.0 million improvement as compared to Q4 2020 was primarily due to a lower reported Net Loss, lower foreign exchange losses and the gain on the European provision, offset by higher stock-based compensation expense in the period. In FY 2021, Adjusted Net Loss improved by 52.1% to $2.2 million as compared to an Adjusted Net Loss of $4.5 million in the FY 2020. This $2.4 million improvement was primarily due to a lower reported Net Loss, lower foreign exchange losses, the absence of any asset write-offs from the U.S. Partner Bankruptcies, and lower stock-based compensation expense as compared to FY 2020.
In Q4 2021, we delivered Adjusted EBITDA of $0.3 million as compared to an Adjusted EBITDA loss of $0.7 million in Q4 2020. Adjusted EBITDA as a percent of total net revenue was 4.6%. This $1.0 million improvement as compared to Q4 2020 was primarily due to a lower reported Net Loss, lower finance costs and lower foreign exchange losses, offset by higher stock-based compensation expense in the period. In FY 2021, Adjusted EBITDA improved by 61.0% to a loss of $1.3 million as compared to an Adjusted EBITDA loss of $3.3 million in FY 2020. This $2.0 million improvement was primarily due to a lower reported Net Loss, lower foreign exchange losses, the absence of any asset write-offs from the U.S. Partner Bankruptcies, and lower stock-based compensation expense as compared to FY 2020.
In Q4 2021, we generated Free Cash Flow of $1.4 million as compared to a negative Free Cash Flow of $0.6 million in Q4 2020. This $2.0 million improvement, as compared to Q4 2020, was primarily due to a lower reported Net Loss (which improved cash flow by $1.7 million), higher non-cash items (primarily stock-based compensation of $0.6 million) and a lower net change in non-cash working capital (which consumed cash by $0.2 million). Capital expenditures, as was the case in Q4 2020, were negligible.
In FY 2021, Free Cash Flow was negative $3.6 million as compared to a negative Free Cash Flow of $1.5 million in FY 2020. This $2.1 million decrease was primarily due to a lower reported Net Loss (which improved cash flow by $4.8 million), lower non-cash items (which decreased cash flow by $0.9 million) and a higher relative net change in non-cash working capital (which consumed cash by $6.0 million).
The significant relative increase in net change in non-cash working capital is directly correlated to the funding of our growth in FY 2021 and was primarily comprised of increases in accounts and other receivables, and inventory, offset by an increase in accounts and other payables.
Selected Consolidated Financial Information
The following table summarizes LXR's recent results for the periods indicated:
LXR Consolidated statements of loss and comprehensive loss (in Canadian dollars) |
||||||||
For the three-month |
For the years ended |
|||||||
2021 |
2020 |
2021 |
2020 |
|||||
Net revenue |
6,415,527 |
3,391,813 |
18,031,254 |
13,777,419 |
||||
Cost of sales |
4,019,652 |
2,283,756 |
11,741,471 |
9,466,577 |
||||
Gross profit |
2,395,875 |
1,108,057 |
6,289,783 |
4,310,842 |
||||
Operating expenses |
||||||||
Selling, general and administrative expenses |
2,587,143 |
2,230,635 |
8,174,184 |
10,359,037 |
||||
Depreciation of property and equipment |
68,471 |
72,342 |
277,506 |
485,318 |
||||
Amortization of intangible assets |
4,674 |
17,010 |
42,482 |
136,833 |
||||
Results from operating activities |
(264,413) |
(1,211,930) |
(2,204,389) |
(6,670,346) |
||||
Other income and expenses |
||||||||
Finance costs |
111,286 |
150,480 |
542,754 |
606,858 |
||||
Foreign exchange loss |
126,740 |
907,549 |
142,172 |
431,567 |
||||
Loss before income taxes |
(502,439) |
(2,269,959) |
(2,899,315) |
(7,708,771) |
||||
Income tax expense (recovery) |
||||||||
Current |
(9,636) |
(61,341) |
8,934 |
1,734 |
||||
(9,636) |
(61,341) |
8,934 |
1,734 |
|||||
Net loss |
(492,803) |
(2,208,618) |
(2,898,249) |
(7,710,505) |
||||
The following table provides a reconciliation of Net Loss to Adjusted Net Income or Adjusted Net Loss and Net Loss to EBITDA and Adjusted EBITDA for the periods indicated:
For the three-month December 31, |
For the years ended December 31, |
||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||||||||
Reconciliation of Net Loss to Adjusted Net Income (Loss) |
|||||||||||||||||||||
Net Loss |
(492,803) |
(2,208,618) |
(2,898,249) |
(7,710,505) |
|||||||||||||||||
Adjustments to Net Loss: |
|||||||||||||||||||||
Foreign exchange loss |
126,740 |
907,549 |
142,172 |
431,567 |
|||||||||||||||||
Write-off of property and equipment |
— |
(33,442) |
— |
1,049,930 |
|||||||||||||||||
Write-off of the right of use liability |
— |
— |
— |
(40,077) |
|||||||||||||||||
Stock-Based Compensation Expense |
643,057 |
441,832 |
748,838 |
1,018,483 |
|||||||||||||||||
Gain on disposals of property and equipment |
— |
— |
(1,250) |
(282) |
|||||||||||||||||
Loss due to bad debt from U.S. Partner Bankruptcies |
— |
6,100 |
— |
703,725 |
|||||||||||||||||
Gain on European related balances |
(163,272) |
— |
(163,272) |
— |
|||||||||||||||||
Store closing costs (recovery) |
9,508 |
(112) |
9,508 |
11,856 |
|||||||||||||||||
Adjusted Net Income (Loss) |
123,230 |
(886,691) |
(2,162,253) |
(4,535,303) |
|||||||||||||||||
For the three-month December 31, |
For the years ended December 31, |
||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||||||||
Reconciliation of net loss to Adjusted EBITDA |
|||||||||||||||||||||
Net Loss |
(492,803) |
(2,208,618) |
(2,898,249) |
(7,710,505) |
|||||||||||||||||
Add: Amortization and depreciation expense |
73,145 |
89,352 |
319,988 |
622,151 |
|||||||||||||||||
Add: Finance costs |
111,286 |
150,480 |
542,754 |
606,858 |
|||||||||||||||||
Add: Income tax expense/(recovery) |
2,077 |
(61,341) |
8,934 |
1,734 |
|||||||||||||||||
EBITDA |
(318,008) |
(2,030,127) |
(2,026,573) |
(6,479,762) |
|||||||||||||||||
Adjustments to EBITDA: |
|||||||||||||||||||||
Foreign exchange loss |
126,740 |
907,549 |
142,172 |
431,567 |
|||||||||||||||||
Gain on disposals of property and equipment |
— |
— |
(1,250) |
(282) |
|||||||||||||||||
Write-off of property and equipment |
— |
(33,442) |
1,049,930 |
||||||||||||||||||
Write-off of the right of use liability |
— |
— |
(40,077) |
||||||||||||||||||
Loss due to bad debt from U.S. Partner Bankruptcies |
— |
6,100 |
703,725 |
||||||||||||||||||
Loss on disposition of subsidiaries |
— |
— |
— |
||||||||||||||||||
Stock-based compensation expense |
643,057 |
441,832 |
748,838 |
1,018,483 |
|||||||||||||||||
Gain on European-related balances |
(163,272) |
(163,272) |
— |
||||||||||||||||||
Store (recovery) closing costs |
9,508 |
(112) |
9,508 |
11,856 |
|||||||||||||||||
Adjusted EBITDA |
298,095 |
(708,200) |
(1,290,577) |
(3,304,560) |
|||||||||||||||||
The following table summarizes certain of our financial results for the most recently completed eight quarters for which financial statements have been prepared by us as a reporting issuer. This unaudited quarterly information has been prepared in accordance with IFRS. Due to the impact of COVID-19 and other factors such as seasonality, the results of operations for any quarter are not necessarily indicative of the results of operations for the full year.
($) |
FY 2021 |
FY 2020 |
||||||
Consolidated statements of loss |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Total net revenue |
6,415,527 |
4,987,628 |
4,026,028 |
2,602,071 |
3,391,813 |
2,857,718 |
1,430,284 |
6,097,604 |
E-commerce revenue |
3,493,670 |
2,629,850 |
2,672,682 |
1,764,640 |
1,715,804 |
885,669 |
802,658 |
975,592 |
E-commerce revenue % of total net revenue |
54.5% |
52.7% |
66.4% |
67.8% |
50.6% |
31.0% |
56.1% |
16.0% |
Gross margin |
37.3% |
35.2% |
32.8% |
31.5% |
32.7% |
28.2% |
33.6% |
31.4% |
Adjusted Net Loss |
123,230 |
(363,117) |
(1,067,683) |
(854,683) |
(886,691) |
(1,156,584) |
(934,116) |
(1,967,708) |
Adjusted EBITDA |
298,025 |
(166,851) |
(839,510) |
(582,241) |
(708,200) |
(782,262) |
(643,919) |
(1,579,975) |
Adjusted EBITDA % of total net revenue |
4.6% |
(3.3%) |
(20.9%) |
(22.4%) |
(20.9%) |
(27.4%) |
(45.0%) |
(25.9%) |
Run rate metrics and growth: |
||||||||
Total net revenue – last 12 months revenue run-rate |
18,031,254 |
15,007,540 |
12,877,630 |
10,281,886 |
13,777,419 |
24,825,779 |
30,282,676 |
37,410,827 |
E-commerce revenue – last 12 months revenue run-rate |
10,560,842 |
8,317,976 |
6,696,795 |
4,976,771 |
4,379,723 |
3,839,571 |
3,939,190 |
4,906,057 |
Free Cash Flow: |
||||||||
Net loss |
(492,803) |
59,223 |
(1,580,635) |
(884,034) |
(2,208,618) |
(2,786,350) |
(1,741,391) |
(974,146) |
Add: non-cash items |
724,391 |
(412,761) |
889,543 |
(94,643) |
97,883 |
1,135,973 |
24,825 |
642,166 |
Add: Net change in non-cash working capital |
1,221,311 |
(1,821,998) |
(531,266) |
(628,959) |
1,475,699 |
1,712,028 |
994,985 |
177,852 |
Cash flows provided/(used) in operating activities |
1,452,899 |
(2,175,536) |
(1,222,358) |
(1,607,636) |
(635,036) |
61,651 |
(721,581) |
(154,128) |
Less: acquisition of property and equipment |
(4,283) |
(15,436) |
(9,998) |
(14,593) |
(4,171) |
0 |
0 |
(1,337) |
Free Cash Flow |
1,448,616 |
(2,190,972) |
(1,232,356) |
(1,622,229) |
(639,207) |
61,651 |
(721,581) |
(155,465) |
Liquidity: |
||||||||
Cash availability |
3,695,677 |
2,603,395 |
4,315,918 |
4,653,792 |
7,289,957 |
501,033 |
797,777 |
1,393,351 |
Working capital |
7,052,502 |
7,083,280 |
7,033,183 |
7,133,717 |
8,949,997 |
2,877,864 |
4,523,360 |
(584,103) |
Capitalization: |
||||||||
Shares outstanding |
92,783,155 |
92,783,155 |
92,783,155 |
92,783,155 |
92,783,155 |
32,783,145 |
32,783,145 |
28,176,012 |
Closing share price |
0.14 |
0.10 |
0.13 |
0.12 |
0.25 |
0.20 |
0.25 |
0.28 |
Market capitalization |
12,989,642 |
9,278,316 |
12,061,810 |
11,133,979 |
22,731,873 |
6,556,629 |
8,195,786 |
7,889,283 |
Add: Total debt |
5,999,440 |
6,272,286 |
5,758,443 |
4,814,459 |
5,733,129 |
5,173,259 |
5,438,870 |
6,009,844 |
Less: Cash |
3,695,677 |
2,603,395 |
4,315,918 |
4,653,792 |
7,289,957 |
501,033 |
797,777 |
1,393,351 |
Enterprise value (EV) |
15,293,405 |
12,947,207 |
13,504,335 |
11,294,646 |
21,175,045 |
11,228,855 |
12,836,879 |
12,505,776 |
Multiple of EV/Last 12 months revenue |
0.85x |
0.86x |
1.05x |
1.10x |
1.54x |
0.45x |
0.42x |
0.33x |
LXR is a socially responsible, digital-first omni-channel retailer of authenticated pre-owned handbags and personal accessories. Since 2010, we have been providing consumers with authenticated branded luxury products from Hermès, Louis Vuitton, Gucci, Prada and Chanel, among other high-quality brands, by promoting their reuse and providing an environmentally responsible way for consumers to purchase luxury products. We achieve this through our digital-first strategy by selling directly to consumers through our website at www.lxrco.com and indirectly by powering the e-commerce and other platforms of key channel partners. Our omni-channel model is also supported by retail "shop-in-shop" experience centers and by wholesale activities with select retail partners across North America.
This press release refers to certain non-IFRS measures. These measures are not recognized under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of LXR's performance and results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of LXR's financial information reported under IFRS. Management uses non-IFRS measures including: "EBITDA," "Adjusted EBITDA," "Adjusted Net Loss", "Free Cash Flow", "LTM1 Total Net Revenue", "LTM E-commerce Net Revenue" and "Inventory Turns". These non-IFRS measures are used to provide investors with supplemental measures of LXR's operating performance and thus highlight trends in LXR's business that may not otherwise be apparent when relying solely on IFRS measures. Management believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of company performance. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For a definition of EBITDA, Adjusted EBITDA, and Adjusted Net Loss, and a reconciliation of these non-IFRS measures to IFRS measures, see the above tables presented.
Certain statements in this press release are prospective in nature and constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward-looking statements in this news release include, but are not limited to, statements concerning future objectives and strategies to achieve those objectives, including, without limitation, store openings and closures, as well as other statements with respect to management's beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, outlook, circumstances, performance or expectations that are not historical facts. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management, which includes assumptions about continued revenues based on historical past performance, management's historical experience, perception of trends and current business conditions, expected future developments, including the Company's capacity to secure additional financing, and other factors which management considers appropriate. With respect to the forward-looking statements included in this press release, management has made certain assumptions with respect to, among other things, the Company's ability to meet its future objectives and strategies, the Company's ability to achieve its future projects and plans and that such projects and plans will proceed as anticipated, the expected growth of the Company's e-commerce revenue, the expected number and timing of store openings, entering into new and/or expanded retail partnerships, the Company's ability to source products, the Company's competitive position in the vintage luxury industry, and beliefs and intentions regarding the ownership of material trademarks and domain names used in connection with the marketing, distribution and sale of the Company's products as well as assumptions concerning general economic and market growth rates, currency exchange and interest rates and competitive intensity, notably in the context of the current COVID-19 outbreak.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
All forward-looking statements included in and incorporated into this press release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this press release, and except as required by applicable law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Readers are cautioned that the actual results achieved will vary from the information provided herein and that such variations may be material. Consequently, there are no representations by LXR that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.
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1 LTM means latest twelve months |
SOURCE LXRandCo, Inc.
Nadine Eap, Chief Financial and Administrative Officer, LXRandCo, Inc., +1 (514) 564-9993 ext: 037, [email protected]
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