Q2 2021 Total and E-Commerce Revenue Up 181% and 214%, Respectively
MONTREAL, Aug. 12, 2021 /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 luxury handbags and personal accessories, today reported its financial results for the second quarter ended June 30, 2021 ("Q2 2021").
"Q2, which is usually our slowest quarter in the year, was productive as we made excellent progress on our digital-first strategy. Marking the bottom in our revenue decline momentum, we posted growth in total net revenue of 181%, in e-commerce net revenue of 214%, and at retail of 140% revenue versus Q2 last year. Through this growth rebound, our average order value grew 2% to $890 and we maintained steady gross margins of 33%. In addition, in keeping with our digital-first plan, we accelerated e-commerce investment by making key digital people hires, and we increased digital marketing spend to build greater brand awareness and increased market share, particularly in Canada, where we grew the business four-fold. In preparation for a more active second half of the year, we have steadily increased our working capital investment in product inventory at competitive gross margins." said Cam di Prata, the Company's CEO.
"We remain optimistic about the second half of the year. Given our current momentum, we have modified our revenue outlook for the full year from between $16 million and $20 million to between $17.5 million and $20.0 million. Estimated e-commerce net revenue as a proportion of total net revenue remains at 50% to 65%. If we can attain the upper end of the revised revenue estimates, it is our expectation that the second half of the year will experience slightly negative to break-even Adjusted EBITDA." added Cam di Prata.
Provided below are the financial highlights and a discussion of the Company's financial results for the three–months, which are to be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the period.
Overview of Results for Q2 2021, compared to Q2 2020
Selected financial highlights include the following:
- Total net revenue increased 181% to $4.0 million. Adjusted net revenue growth, excluding the 2020 revenue from U.S. Partner Bankruptcies, increased 349%.
- E-commerce net revenue increased 214% to $2.5 million, and e-commerce average order value increased 2% to $889 per transaction. Adjusted e-commerce net revenue growth, excluding U.S. Partner Bankruptcies, increased 260%.
- E-commerce penetration increased to 63% from 56%.
- Retail net revenue, which includes revenue from retail stores and wholesale operations, was $1.5 million, an increase of 140%. At quarter-end, we had a network of ten stores (eight of which were in operation), a reduction of 49 stores versus Q2 2020.
- Gross profit margin was 32.8% compared to 33.6%.
- Owing primarily to increased e-commerce investment in people and digital marketing spend, selling, general and administrative ("SG&A") expenses increased 82% to $2.5 million, representing 61% of net revenue versus 95% of net revenue.
- Adjusted Net loss (a non-IFRS measure) was $1.1 million versus a loss of $0.9 million.
- Adjusted EBITDA (a non-IFRS measure) was a loss of $0.8 million versus a loss of $0.6 million.
- Free Cash Flow (a non-IFRS measure) was negative $1.2 million as compared to negative $0.7 million, reflecting primarily increased working capital investment in product inventory.
- Cash availability at the end of Q2 2021 was $4.5 million as compared to $2.6 million in Q2 2020.
https://www.newswire.ca/news-releases/lxr-reports-financial-results-for-the-second-quarter-2021-875041665.html