LXRandCo Announces Record Preliminary E-Commerce Revenue for Fourth Quarter and Full-Year 2020

MONTREAL, Jan. 19, 2021 /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR) (TSX: LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, today announced that, based on preliminary fourth quarter revenue estimates, the Company expects record e-commerce revenue in 2020 with total e-commerce revenue for the three-months ended December 31, 2020 and for the twelve-months ended December 31, 2020 of $1.7 million and $4.2 million, respectively, representing increases of 42.8% and 13.7%, respectively, over the prior periods. Total expected revenue, which includes e-commerce and retail channels, is expected to be $3.3 million and $13.2 million for the three-months ended December 31, 2020 and the twelve-months ended December 31, 2020, respectively. The Company's expected results reflect the Company's ongoing repositioning of the business from an omni-channel bricks and mortar led strategy to an e-commerce high growth model.

E-Commerce Preliminary Revenue
The following are select preliminary E-commerce revenue highlights for the three-month and twelve-month periods ended December 31, 2020 as compared to prior periods in 2019:

• E-commerce revenue from our website, LXRCO.com is expected to increase by 49.0% in the fourth quarter and 42.4% for the twelve-month period ended December 31;
  
  
• Total E-commerce revenue, which includes third-party online revenue from LXR partners, increased 42.8% in the fourth quarter and 13.7% for the twelve-month period ended December 31. Excluding LXR partners that are no longer in business¹ ("Bankrupt Partners"), total E-commerce revenue increased 52.4% in the fourth quarter and 17.2% for the twelve-month period ended December 31; and
  
  
• Total E-commerce average order value ("AOV") is expected to be $908 in the fourth quarter, representing an increase of 10.2 %.

E-commerce Revenue and Other Highlights

Comparable performance (000s)	Three months ended Dec. 31, 2020	Three months ended Dec. 31, 2019	Increase/ (Decrease)	Twelve months ended Dec. 31, 2020	Twelve months ended Dec. 31, 2019	Increase/ (Decrease)
LXRCO.com	$1,118	$751	49.0%	$2,847	$2,000	42.4%
Third-party partners	532	406	31.3%	1,388	1,724	(19.5%)
Expected E-commerce Revenue	$1,651	$1,156	42.8%	$4,235	$3,724	13.7%
Less: Revenue from Bankrupt Partners^1	Nil	73		206	286
Expected E-Commerce Revenue excluding Bankrupt Partners	$1,651	$1,083	52.4%	$4,029	$3,438	17.2%
AOV E-commerce	$908.08	$823.92	10.2%	$893.58	$812.29	10.0%

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¹ Refers to LXR e-commerce revenue derived from Lord & Taylor, Stein Mart, and Century 21 retail banners, which filed for bankruptcy in 2020.

Total Expected Revenue
The following are select preliminary total LXR revenue highlights for the three-month and twelve-month periods ended December 31, 2020 as compared to prior periods in 2019:

• Total LXR revenue is expected to decrease by 77.2% in the fourth quarter and by 66.7% for the twelve-month period ended December 31;
  
  
• Revenue from Retail (which includes retail and wholesale activities including from Bankrupt Partners) is expected to decrease by 87.6% in the fourth quarter and by 74.3% for the twelve-month period ended December 31; and
  
  
• Excluding the total revenue attributable to Bankrupt Partners, total LXR revenue is expected to decrease by 35.7% in the fourth quarter and by 38.4% for the twelve-month period ended December 31.
  
  
• E-commerce revenue as a percentage of total revenue is expected to be 50% for the fourth quarter and 32% for the twelve months ended December 31, 2020, representing increases of 42.8% and 13.7%, respectively; and
  
  
• As at December 31, 2020, the Company's retail network consisted of 10 stores of which, due to COVID-19 lockdowns, three were in operation compared to 80 stores in operation as at December 31, 2019.

Total Expected Revenue

Comparable performance (000s)	Three months ended Dec. 31, 2020	Three months ended Dec. 31, 2019	Increase/ (Decrease)	Twelve months ended Dec. 31, 2020	Twelve months ended Dec. 31, 2019	Increase/ (Decrease)
E-commerce	$1,651	$1,156	42.8%	$4,235	$3,724	13.7%
Retail	1,649	13,299	(87.6%)	8,949	35,870	(75.1%)
Expected Total Revenue	$3,300	$14,455	(77.2%)	$13,184	$39,595	(66.7%)
Less: Revenue/(returns) from Bankrupt Partners^2	(4)	9,313		6,029	27,977
Expected Total Revenue excluding Bankrupt Partners	$3,304	$5,142	(35.7%)	$7,156	$11,618	(38.4%)
E-commerce Revenue % of Total Expected Revenue	50%	8%		32%	9%

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² Refers to total LXR revenue derived from Stage Stores, Lord & Taylor, Stein Mart, and Century 21 retail banners, which filed for bankruptcy in 2020.

About LXRandCo
LXRandCo is a a socially responsible, digital-first omni-channel retailer of branded vintage 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]