LXRandCo Announces Record Mid-First Quarter E-commerce Revenue Growth of 65% versus Prior Year

MONTREAL, Feb. 17, 2021 /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR) (TSX: LXR.WT), a North American omni-channel retailer of pre-loved luxury handbags and accessories, today provided a mid-quarter update, which includes preliminary revenue estimates for the Company's six-week period between January 1, 2021 and February 15, 2021 (the "Mid-First Quarter").

"Following a record year in 2019, the COVID-19 pandemic caused the bankruptcy of several of our retail partners in 2020, which had a material permanent erosion in our revenue base. To overcome this and to better respond to the rapidly changing needs of our consumers, the Company fundamentally shifted its strategic direction to a digital-first model in the third quarter of 2020," said Cam di Prata, the Company's interim Chief Executive Officer. "Since then, we have recapitalized the Company and have grown our e-commerce team, and we are very encouraged by the early results of the Company's transformation. As we communicated previously, in the fourth quarter of 2020, our e-commerce revenue is expected to have grown 43% versus the prior comparable period. For the first six weeks of this year, which includes our recent Valentine's Day campaign, we estimate our e-commerce revenue growth to be 65% higher than that of the same period last year, making our e-commerce channel our largest revenue contributor for the period."

Based on preliminary estimates, select revenue highlights for the Mid-First Quarter and for the latest twelve-month period ending February 15, 2021 ("LTM") as compared to comparable periods in 2020 are as follows:

• In the Mid-First Quarter period, the Company achieved record-level e-commerce revenue of $773,000, representing an increase of 65% and, on an LTM basis, the Company's e-commerce revenue was $4.7 million, representing an increase of 23%;
  
  
• E-commerce average order value ("AOV") during the Mid-First Quarter was $876, an increase of 15%;
  
  
• E-commerce revenue as a percentage of total Company revenue was 87% for the Mid-First Quarter and 48% on an LTM basis; and
  
  
• Throughout the Mid-First Quarter, and due to continued COVID-19 lockdowns, the Company operated only three of its ten retail stores, compared to a total of 80 stores in operation as at February 15, 2020. As previously disclosed, 70 of the Company's 80 stores in operation in early 2020 have permanently closed due to retail partners that are no longer in business.

Preliminary Revenue and AOV Estimates

	Six-weeks ended February 15				Twelve-months ended February 15
(000s, except AOV)	2021	2020		Increase/ (Decrease)	2021	2020		Increase/ (Decrease)
E-commerce	$773	$468		65%	$4,670	$3,797		23%
Retail	117	2,739		(96%)	6,605	35,135		(81%)
Total Revenue	$890	$3,207		(72%)	$11,275	$38,932		(71%)
Less: Revenue from Discontinued Partners	-	(2,290)			(3,609)	(27,247)
Total Revenue excluding Discontinued Partners	$890	$917		(3%)	$7,665	$11,685		(34%)
AOV	$876	$761		15%	$889	$831		7%
E-commerce Revenue as % of Total Revenue excluding Discontinued Partners	87%	48%			61%	30%

Conference call
The Company will be hosting a short conference call to discuss the above on February 18, 2021 at 8:15AM (ET). Participants can join the conference call by dialing 647-427-7450 or 1-888-231-8191. Participants can also access the conference call via the Internet at https://produceredition.webcasts.com/starthere.jsp?ei=1434392&tp_key=1e59261d73. The Company will announce its fourth quarter financial results for the three-month and twelve-month periods ending December 31, 2020 at the end of March 2021.

About LXRandCo
LXRandCo is a a socially responsible, digital-first omni-channel retailer of pre-loved luxury handbags and other personal accessories. We curate, source and authenticate high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci, Prada and Chanel and sell them at attractive prices through our e-commerce website, www.lxrco.com, as well as the e-commerce platforms of our partners across North America. Our omni-channel model is also supported by retail 'shop-in-shop' experience centers and by wholesale activities.

SOURCE LXRandCo, Inc.

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