LXRandCo Reports Continued Growth for Second Quarter 2017
Over 70% Year Over Year Growth in Revenue, 15 Store Openings and Continued Expansion of e Commerce Revenue
MONTREAL, Aug. 14, 2017 /CNW/ LXRandCo, Inc.
“Our 73% year over year growth in net revenue for the second quarter is the direct result of the continued successful execution of our international omni channel strategy,” said Fred Mannella, Chief Executive Officer. “We opened 15 stores, expanding our retail network to 61 stores at the end of the quarter, and remain on track to meeting fake designer bags our cheap louis vuitton bags from china stated target of 122 by year end. At the same replica designer handbags time, we meaningfully grew the proportion of e Commerce revenue. Moving forward, we remain focused on new store openings with both existing and new retailer partners in North America and overseas, and driving continued expansion of our fast growing e commerce business, while providing an exceptional consumer experience across all of our channels.”
“Our growth this quarter is indicative of the strong interest in the luxury vintage space, and our continued international expansion reaffirms the global appeal for our product offering,” added Joe Mimran, Director and chair of the Company’s International Business Development Committee.
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.
Highlights for the Second Quarter ended June 30, 2017(all comparable figures are for the second quarter ended June 30, 2016)
Net revenue increased 73% to $7.2 million replica designer handbags from $4.1 million.
Opened 15 stores, offset by one closure, expanding the retail network to 61 stores.
E Commerce revenue increased to 6.2% of net revenue from 4.3%.
Gross profit increased 60% to $2.0 million from $1.3 million.
Adjusted EBITDA (a non IFRS measure) was $(0.6) million, compared to $(0.2) million.
Adjusted Net Loss (a non IFRS measure) was $0.9 million, compared to $0.5 million.
The number of employees increased to 223.
Discussion of Second Quarter Results
The following provides an overview of LXRandCo’s financial results during the three month period ended June 30, 2017 compared to the three month period ended June 30, 2016.
Net revenue increased by 73% to $7.2 million in the three month period ended June 30, 2017 from $4.1 million in the three month period ended June 30, 2016. E replica louis vuitton Commerce revenue as a percentage of net revenue was 6.2% in the three month period ended June 30, 2017 compared to 4.3% in the three month period ended June 30, 2016.
The increase in net revenue was primarily attributable to the increase in sales from LXRandCo operating 39 more stores by the end of the three month period ended June 30, 2017 compared to the number of stores at the end of the three month period ended June 30, 2016. LXRandCo’s retail network consisted of 61 stores as at June 30, 2017 compared to a retail network of 22 stores as at June 30, 2016. Store openings in the three month period ended June 30 1:1 replica handbags , 2017 consisted of 15 Retail Stores, and there Perfect Quality Louis Vuitton Replica was one Retail Store closure. The increase in net revenue was also due to an increase aaa replica designer handbags in wholesale revenue from fewer clients, and an increase in e Commerce revenue which was primarily attributable to a more favourable customer experience as a high quality replica handbags china result of certain initiatives such as the Company’s new web portal which was released in mid March 2017 and the ongoing benefit of increased marketing activity undertaken in the first quarter of 2017.
Gross profit increased by 60% to $2.0 million in the three month period ended June 30, 2017 from $1.3 million in the three month period ended June 30, 2016. The change was primarily attributable to the increase in net revenue.
Gross profit margin was 28.4% of net revenue in the three month period ended June 30, 2017, compared to 30.8% of net revenue in the three month period ended June 30, 2016. The decrease in gross profit margin was primarily due to the implementation of an enhanced commission structure for retail employees at store level, investments in branding, changes in product mix related to the sale of lower margin products, increased freight costs associated with international expansion and e Commerce activity,the impact of a weaker US dollar against the Canadian dollar in 2017 as compared to the same period in Fake Louis Vuitton Replica Bags 2016, and promotion activities undertaken in the quarter.
Net loss was $16.4 million in the three month period ended June 30, 2017, compared to a net loss of $0.2 million in the three month period ended June 30, 2016. The increase in net loss was driven by factors related to the acquisition of LXR Produits de Luxe International Inc. (“LXR International”) (the “LXR Acquisition”) aaa replica designer handbags , in particular, the impact of a non cash charge of excess of fair value over net assets acquired, and non recurring acquisition costs.
Adjusted Net Loss was $0.9 million in the three month period ended June 30, 2017, compared to an Adjusted Net Loss of $0.5 million in the three month period ended June 30, 2016. This increase was primarily a result of a decrease in gross profit margin and higher SG expenses resulting from the rapid expansion of LXRandCo’s retail network.
Adjusted EBITDA was $(0.6) million in the three month period ended June 30, 2017, compared to $(0.2) million in the three month period ended June 30, 2016.
In connection with the LXR Acquisition, the auditor of LXR International, replica louis vuitton bags Ernst Young LLP, has been appointed the auditor of the Company and PricewaterhouseCoopers LLP has ceased to be the auditor of the Company.
A replay will be available shortly after the conclusion of the call and will remain available until September 15, 2017. To access the replay, please dial 1 416 849 0833 or toll free 1 855 859 2056 and use passcode 65973172.
LXRandCo is a rapidly growing, international omni channel retailer of branded vintage luxury handbags and accessories. LXRandCo offers pre owned products from iconic brands such as Herms, Louis Vuitton, Gucci and Chanel, among others, at attractive prices and seeks to appeal to the aspirational lifestyle Designer Louis Vuitton Replica Handbags needs of women of all ages. As at June 30, 2017, LXRandCo’s retail network consisted of 61 stores with nine located in Canada Discount Replica Louis Vuitton Bags , 38 in the United States, 10 in the Germany and four in Belgium. LXRandCo has offices in Montral, Qubec, and Tokyo, Japan.
This press release makes reference to certain non IFRS measures. EBITDA, Adjusted EBITDA and Adjusted Net Loss are not measures recognized under international financial reporting standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar measures presented by other companies. These measures should also not be considered in isolation nor used as a substitute for measures of performance prepared in accordance with IFRS. The Company believes that these non IFRS financial measures provide meaningful supplemental information regarding the Company’s underlying performance and may be useful to investors because they allow for greater transparency with respect to key metrics used by the Company in its financial and operational decision making, normalized for non recurring events. LXRandCO also believes that providing such information to securities analysts, investors and other interested parties who frequently use non IFRS measures in the evaluation of issuers will allow them to better compare its performance against others in the retailing industry. Please see the Company’s MD for a detailed description of these measures and a reconciliation of the measures to the nearest IFRS measures.