LXR Announces Preliminary First Quarter 2021 E-Commerce Revenue Growth of 70%

MONTREAL, April 22, 2021 /CNW/ - LXRandCo, Inc. (LXR or the Company) (TSX: LXR) (TSX: LXR.WT), a North American, digital-first omni-channel retailer of authenticated pre-owned luxury products, today announced that, based on preliminary first quarter estimates, the Company expects total revenue of $2.6 million, including e-commerce revenue of $1.6 million. On an adjusted¹ basis, the e-commerce revenue for the three months ended March 31, 2021 (Q1) represents growth of 70% over the same period last year. Total and e-commerce revenue for the last twelve months ending March 31, 2021 (LTM 2021) are expected to be $10.3 million and $5.0 million, respectively.

"We are pleased with our progress in Q1, our slowest quarter of the year, where among other things, we grew the e-commerce business by 70% without compromising on average order value, which increased by 4%. Our actual growth momentum in Q1 was significantly above this level but was affected by shipping delays at quarter-end, which caused us to come slightly short of our Q1 e-commerce growth guidance of 75%. Those orders, however, have since been shipped and will be booked in Q2. Also noteworthy was that for the first time during the pandemic, we posted a 19% increase in total adjusted revenue, reflecting positive momentum in total revenue growth. While the effects of the pandemic are still present, we are optimistic about our prospects for the balance of the year. We are well-positioned to take advantage of the growing luxury resale market both online and at retail, where wholesale demand has been building." said Cam di Prata, LXR's interim CEO.

Q1 and LTM 2021

To facilitate greater comparability, the financial information provided herein is also provided on an adjusted basis. The following are preliminary net revenue highlights for Q1 and LTM 2021 as compared to their respective prior periods in 2020:

Q1:

• Total LXR revenue — $2.6 million, a decrease of 58% (+19% on an adjusted basis)
• E-commerce revenue — $1.6 million, an increase of 60% (+70%, adjusted)
• E-commerce average order value (AOV) — an increase of 4% to $858 per order
• E-commerce penetration — 60% of total revenue
• Retail net revenue² — $1.0 million, a decrease of 80% (-18%, adjusted)

LTM 2021:

• Total revenue — $10.3 million, a decrease of 73% (-17%, adjusted)
• E-commerce revenue — $5.0 million, an increase of 21% (+26%, adjusted)
• E-commerce AOV — an increase of 4% to $879 per order
• E-commerce penetration — 48% of total revenue (59%, adjusted)
• Retail net revenue² — $5.3 million, a decrease of 84% (-45%, adjusted)

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¹ Adjusted means excluding the net revenue from COVID-19-related bankruptcies of retail partners: Century 21, Stage Stores, Lord & Taylor and Stein Mart.

² Retail net revenue means revenue from our 'shop-in-shop' stores and wholesale activities. At the end of Q1 we had ten stores, only three of which were in operation due to COVID-19 lockdowns. At the end of Q1 2020 we had 80 stores, all of whom were closed due to Covid-19 lockdowns.

Preliminary Revenue by Channel

		Three months ended March 31				Last twelve months ended March 31
($000s)		2021	2020	Increase/ (Decrease)		2021	2020	Increase/ (Decrease)
Total LXR:
Net revenue		$2,588	$6,098	(58%)		$10,267	$37,411	(73%)
Less: Revenue from U.S. Bankrupt Partners^1		–	3,931	–		2,145	27,633	(92%)
Adjusted Total net revenue		$2,588	$2,167	19%		$8,123	$9,777	(17%)
E-commerce:
Net revenue		$1,558	$976	60%		$4,962	$4,096	21%
Less: Revenue from U.S. Bankrupt Partners^1		–	59	–		143	273	(48%)
Adjusted e-commerce net revenue		$1,558	$917	70%		$4,819	$3,823	26%
AOV		$858	$824	4%		$879	$847	4%
E-commerce penetration (adj.)		60%	42%			59%	32%

E-commerce Revenue and Growth Rates

One of the metrics we rely upon in gauging our progress is revenue growth based on the latest twelve months (LTM) of data as it normalizes for the effects of seasonality. As indicated below, our LTM compound annual growth rate (CAGR) in ecommerce revenue over the last eight quarters was 45% and has been accelerating in 2021. The following table provides historical quarterly and LTM E-commerce revenue 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.

	E-commerce revenue (unadjusted)
Actuals ($):	Quarterly	LTM
Q1 2019	604,023	2,294,094
Q2 2019	959,525	2,654,334
Q3 2019	985,288	3,057,856
Q4 2019	1,175,652	3,724,488
Q1 2020	975,592	4,096,057
Q2 2020	802,658	3,939,190
Q3 2020	885,669	3,839,571
Q4 2020	1,715,804	4,379,723
CAGR (8 quarters)		45%

About LXR

LXRandCo 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 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.

Factors Affecting Our Business

We generally believe that our performance and future success depends on a number of factors that present significant opportunities for us. These factors are also subject to a number of inherent risks and challenges and should be read in conjunction with the risk factors highlighted in the "Risk Factors" section of our Management Discussion and Analysis filing and in our Annual Information Form for the year ended December 31, 2020 and as described from time to time in the reports and disclosure documents filed by us with Canadian securities regulatory agencies and commissions from time to time.

SOURCE LXRandCo, Inc.

Nadine Eap, Chief Financial Officer, [phone] ext: 037, [email protected]