Stable Total Net Revenue of $5.0 Million in Q3 2022
Cash Earnings
of $0.7 Million and Free Cash Flow of
$1.2 million in Q3 2022
YTD
2022 Total Net Revenue of $15
Million, up 27%
YTD 2022 E-commerce Net Revenue up
38%, E-commerce Penetration 62%
MONTREAL, Nov. 10,
2022 /CNW/ - LXRandCo, Inc. ("LXR" or the "Company")
(TSX: LXR), a North American socially responsible, digital-first
omni-channel retailer of authenticated pre-owned handbags and
personal accessories, today reported its financial results for the
three-month period ended September 30,
2022 ("Q3 2022") and the nine-month period ended
September 30, 2022 ("YTD 2022").
Total net revenue for Q3 2022 remained stable at $5.0 million compared to the third quarter in
2021. Total net revenue for YTD 2022 was $14.8 million, 27% higher than that for same
period last year. For the last twelve-month ("LTM") period ending
September 30, 2022, total net revenue
was $21.2 million representing a 41%
increase over the same period last year.
"Despite a strong month of July, where our total net revenue
grew 22% and e-commerce net revenue grew 35%, we experienced the
effects of a weakening economy in the latter half of Q3 2022, which
led to a slowing in consumer demand for our products particularly
in Canada and resulted in our
posting flat sales growth for the quarter. This however was offset
by strong U.S. revenue growth, growth in our e-commerce channel, a
strong currency and continued cost containment measures, which
generated positive Cash Earnings1 and positive Free Cash
Flow2 of $0.7 million and
$1.2 million, respectively. For the
fourth quarter and going into 2023, given the current economic
uncertainty, our priority is to continue growing our revenue
responsibly with a focus on costs and achieving near term
profitability." said Cam di Prata,
Chief Executive Officer of the Company.
Provided below are the financial highlights and a
discussion of our financial results for Q3 2022 and YTD 2022,
which are to be read in conjunction with the Company's unaudited
interim condensed consolidated financial statements and the
accompanying notes thereto, the Company's Management's Discussion
and Analysis ("MD&A") for the period and our most recent Annual
Information Form ("AIF"), incorporated by reference herein, and as
described from time to time in the reports and disclosure documents
filed by the Company with the Canadian securities regulatory
agencies and commissions.
_________________________________
|
1 Cash
Earnings (or net cash generated before changes in non-cash working
capital), a non-IFRS measure, is defined as Net Profit or
Loss plus non-cash charges.
|
2 Free Cash Flow, a non-IFRS
measure, is defined as net cash generated from operating activities
excluding net cash used in investing activities.
|
Overview of Results for the
Three-Month Period Ended September 30,
2022 ("Q3 2022"), compared to the Three-Month Period Ended
September 30, 2021 ("Q3
2021")
Selected financial highlights for the period include the
following:
- Total net revenue remained stable at $5.0 million. Revenue growth from the U.S., which
accounted for 74% of total revenue, grew 21%. Revenue growth in
Canada declined 32%.
- E-commerce net revenue increased 8% to $2.7 million. E-commerce average order value
("AOV") was $963 per transaction.
E-commerce net revenue as a proportion of total net revenue
("E-commerce penetration") was 54%.
- Retail net revenue was $2.3
million versus $2.5 million, a
decrease of 7%. At quarter-end, we had nine stores in operation,
unchanged from Q3 2021.
- Gross profit margin was 37.5% compared to 38.4% in Q3 2021. In
2022, we secured a new sourcing partner that provided access to
additional inventory on a consignment basis, but at slightly lower
gross margins relative to those in our traditional direct sourcing
channels. Excluding the impact of this consignment channel partner,
gross margin for Q3 2022 was 39.3%.
- Selling, general and administrative ("SG&A") expenses
increased 12% to $2.3 million,
representing 47% of total net revenue, from $2.1 million, or 42% of total net revenue. This
net increase in SG&A expense was primarily due to an increase
in stock-based compensation, a non-cash expense.
- Adjusted EBITDA loss (a non-IFRS measure) was $0.3 million versus a loss of $0.2 million.
- Cash Earnings (a non-IFRS measure) were $0.7 million as compared to $0.1 million in Q3 2021, an improvement of
$0.6 million.
- Free Cash Flow (a non-IFRS measure) was positive with inflows
of $1.2 million as compared to
negative outflows of $2.2 million in
Q3 2021, an improvement of $3.4
million.
Overview of Results for the
Nine-Month Period Ended September 30,
2022 ("YTD 2022"), compared to the Nine-Month Period Ended
September 30, 2021 ("YTD 2021")
Despite the economic headwinds experienced in Q3 2022, YTD 2022
revenue performance was strong compared to prior year due primarily
to solid revenue growth in our e-commerce channel. This was aided
by stable gross margins, a strong currency and continued cost
containment measures, which generated near break-even levels in
both Cash Earnings (a non-IFRS measure) and Free Cash Flow (a
non-IFRS measure) for the period.
Selected financial highlights include the following:
- Total net revenue increased 27% to $14.8
million. Revenue growth from the U.S., which accounted for
70% of total revenue, grew 34%. Revenue growth in Canada increased 14%.
- E-commerce net revenue increased 38% to $9.1 million. E-commerce AOV was $1,022 per transaction. E-commerce penetration
was 62%.
- Retail net revenue was $5.7
million versus $5.0 million,
an increase of 13%. At quarter-end, we had nine stores in
operation, unchanged from YTD 2021.
- Gross profit margin was 36.1% compared to 36.2% in YTD 2021.
Excluding the impact of the consignment partner arrangement
referred to in Q3 2022 financial highlights, gross margin for YTD
2022 was 37.1%.
- SG&A expenses increased by 20% to $7.1 million, representing 48% of total net
revenue, from $5.9 million, or 51% of
total net revenue. This increase in SG&A expense was primarily
due to higher wages and salaries from headcount additions during
the year. SG&A expenses in YTD 2021 included the benefits of
pandemic-related government wage subsidies. Excluding the benefit
of these subsidies, YTD 2022 SG&A increased 17%.
- Adjusted EBITDA loss (a non-IFRS measure) was $1.4 million versus a loss of $1.8 million.
- Cash Earnings (a non-IFRS measure) were negative $0.2 million as compared to negative $2.0 million in YTD 2021, an improvement of
$1.8 million.
- Free Cash Flow (a non-IFRS measure) in the period was near
break-even as compared to negative outflows of $5.0 million in YTD 2021, an improvement of over
$5.0 million.
- Cash availability on September 30,
2022 was $2.2 million as
compared to $3.8 million on
December 31, 2021. The decrease in
cash of $1.6 million was due to the
repayment of third-party debt during the year.
Outlook
Given the current economic environment, and the resulting
related uncertainty in consumer spending, our full-year 2022 total
net revenue guidance is $20 million
to $22.5 million. The Company expects
to break-even in Q4 2022.
The above forward-looking statements reflect our expectations as
of November 10, 2022, and is subject
to substantial uncertainty. Given the current economic environment,
our results and expectations for Q4 2022 are inherently
unpredictable and may be materially affected by many factors, such
as uncertainty regarding the impacts of the COVID-19 pandemic,
fluctuations in foreign exchange rates, changes in global economic
and geopolitical conditions and customer demand and spending
(including the impact of recessionary fears), inflation, interest
rates, regional labor market and global supply chain constraints,
world events, the rate of growth of the Internet, online commerce,
and cloud services, and the various risk factors discussed in
"Summary of Factors Affecting Results from Operations" and
"Risk Factors" in our MD&A and AIF.
Selected Consolidated Financial
Information
The following table summarizes LXR's recent results for the
periods indicated:
($)
|
For the three-months
ended
September
30,
|
|
For the nine-months
ended
September
30,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net
revenue
|
5,006,612
|
4,987,628
|
|
14,783,395
|
11,615,727
|
Cost of
sales
|
3,126,631
|
3,073,058
|
|
9,444,101
|
7,405,610
|
Gross
profit
|
1,879,981
|
1,914,570
|
|
5,339,294
|
4,210,117
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative expenses
|
2,345,896
|
2,087,965
|
|
7,091,423
|
5,903,250
|
Depreciation of
property and equipment
|
80,885
|
73,098
|
|
231,351
|
209,035
|
Amortization of
intangible assets
|
2,034
|
5,938
|
|
10,848
|
37,808
|
Loss from operating
activities
|
(548,834)
|
(252,431)
|
|
(1,994,328)
|
(1,939,976)
|
Other income and
expenses
|
|
|
|
|
|
Finance
costs
|
159,812
|
117,230
|
|
418,231
|
431,468
|
Foreign exchange loss
(gain)
|
(1,081,490)
|
(428,884)
|
|
(1,515,211)
|
15,432
|
Loss before income
taxes
|
372,844
|
59,223
|
|
(897,348)
|
(2,386,876)
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
|
|
Current
|
2,634
|
—
|
|
9,960
|
18,570
|
Net profit
(loss)
|
370,210
|
59,223
|
|
(907,308)
|
(2,405,446)
|
The following table provides a reconciliation of Net Profit or
Loss to Adjusted Net Income or Adjusted Net Loss and Net Profit or
Loss to EBITDA and Adjusted EBITDA for the periods indicated:
($)
|
For the three-months
ended
September
30,
|
|
For the nine-months
ended
September
30,
|
|
2022
|
2021
|
|
2022
|
2021
|
Reconciliation of
Net Profit (Loss) to Adjusted Net Profit (Loss)
|
|
|
|
|
|
Net profit
(loss)
|
370,210
|
59,223
|
|
(907,308)
|
(2,405,446)
|
Adjustments to Net
Profit (Loss):
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
(1,081,490)
|
(428,884)
|
|
(1,515,211)
|
15,432
|
Gain on disposal of
property and equipment
|
—
|
—
|
|
—
|
(1,250)
|
Stock-based
compensation
|
148,481
|
6,544
|
|
310,508
|
105,781
|
Information technology
non-recurring expense
|
—
|
—
|
|
62,479
|
—
|
Government wage subsidy
program
|
—
|
(4,338)
|
|
—
|
(177,361)
|
Adjusted Net
Loss
|
(562,799)
|
(367,455)
|
|
(2,049,532)
|
(2,462,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($)
|
For the three-months
ended
September
30,
|
|
For the nine-months
ended
September
30,
|
|
2022
|
2021
|
|
2022
|
2021
|
Reconciliation of
Net Profit (Loss) to Adjusted EBITDA
|
|
|
|
|
|
Net profit
(loss)
|
370,210
|
59,223
|
|
(907,308)
|
(2,405,446)
|
|
|
|
|
|
|
Adjustments to Net
Profit (Loss):
|
|
|
|
|
|
Amortization and
depreciation expenses
|
82,919
|
79,036
|
|
242,199
|
246,843
|
Finance
costs
|
159,812
|
117,230
|
|
418,231
|
431,468
|
Income tax
expense
|
2,634
|
—
|
|
9,960
|
18,570
|
EBITDA
|
615,575
|
255,489
|
|
(236,918)
|
(1,708,565)
|
|
|
|
|
|
|
Adjustments to
EBITDA:
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
(1,081,490)
|
(428,884)
|
|
(1,515,211)
|
15,432
|
Gain on disposal of
property and equipment
|
—
|
—
|
|
—
|
(1,250)
|
Stock-based
compensation
|
148,481
|
6,544
|
|
310,508
|
105,781
|
Information technology
non-recurring expense
|
—
|
—
|
|
62,479
|
—
|
Government wage subsidy
program
|
—
|
(4,338)
|
|
—
|
(177,361)
|
Adjusted
EBITDA
|
(317,434)
|
(171,189)
|
|
(1,379,142)
|
(1,765,963)
|
The following tables provide a reconciliation of Net Profit or
Loss to Cash Earnings and Free Cash Flow for the periods
indicated:
|
For the three-months
ended September 30,
|
($)
|
2022
|
2021
|
Increase
(decrease)
|
Reconciliation of
Net Profit to Cash Earnings and Free Cash
Flow
|
|
|
|
Net profit
|
370,210
|
59,223
|
310,987
|
Adjustments to Net
Profit (Loss):
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
80,885
|
73,099
|
7,786
|
Amortization of
intangible assets
|
2,034
|
5,937
|
(3,903)
|
Amortization of
deferred financing costs
|
7,202
|
7,203
|
(1)
|
Stock-based
compensation expense
|
148,481
|
6,544
|
141,937
|
Unrealized foreign
exchange loss (gain)
|
108,201
|
(5,496)
|
113,697
|
|
346,803
|
87,287
|
259,516
|
Cash
Earnings
|
717,013
|
146,510
|
570,503
|
Net change in non-cash
working capital balances
|
470,826
|
(2,322,046)
|
2,792,872
|
Cash flows (used)
generated in operating activities
|
1,187,839
|
(2,175,536)
|
3,363,375
|
Less: Acquisitions of
property and equipment
|
(4,050)
|
(15,436)
|
11,386
|
Free Cash
flow
|
1,183,789
|
(2,190,972)
|
3,374,761
|
|
|
|
|
|
For the nine-months
ended September 30,
|
($)
|
2022
|
2021
|
Increase
(decrease)
|
Reconciliation of
Net Profit (Loss) to Cash Earnings and Free Cash Flow
|
|
|
|
Net profit
(loss)
Adjustments to Net
Profit (Loss):
|
(907,308)
|
(2,405,446)
|
1,498,138
|
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
231,351
|
209,035
|
22,316
|
Amortization of
intangible assets
|
10,848
|
37,808
|
(26,960)
|
Amortization of
deferred financing costs
|
21,373
|
21,373
|
-
|
Stock-based
compensation expense
|
310,508
|
105,781
|
204,727
|
Gain on disposal of
property and equipment
|
-
|
(1,250)
|
1,250
|
Unrealized foreign
exchange loss
|
115,968
|
10,601
|
105,367
|
|
690,048
|
383,348
|
306,700
|
Cash
Earnings
|
(217,260)
|
(2,022,098)
|
1,804,838
|
Net change in non-cash
working capital balances
|
218,256
|
(2,983,432)
|
3,201,688
|
Cash flows (used)
generated in operating activities
|
996
|
(5,005,530)
|
5,006,526
|
Less: Acquisitions of
property and equipment
|
(14,547)
|
(40,027)
|
25,480
|
Free Cash
flow
|
(13,551)
|
(5,045,557)
|
5,032,006
|
|
|
|
|
|
|
Selected Quarterly Financial
Information
The following table summarizes certain of our financial results
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. Due to the impact of the COVID-19 pandemic and other
factors such as seasonality, the results of operations for any
quarter are not necessarily indicative of the results of operations
for the full year.
($)
|
|
|
|
Consolidated
statements of loss
|
Q3-2022
|
Q2-2022
|
Q1-2022
|
Q4-2021
|
Q3-2021
|
Q2-2021
|
Q1-2021
|
Q4-2020
|
Total net
revenue
|
5,006,612
|
5,481,267
|
4,295,516
|
6,415,527
|
4,987,628
|
4,026,028
|
2,602,071
|
3,391,813
|
E-commerce
revenue
|
2,669,366
|
3,268,570
|
3,149,395
|
3,958,670
|
2,506,850
|
2,522,682
|
1,572,640
|
1,715,804
|
E-commerce revenue % of
total net
revenue
|
53.9 %
|
59.6 %
|
73.3 %
|
61.7 %
|
50.3 %
|
62.7 %
|
60.4 %
|
50.6 %
|
Gross margin
|
37.5 %
|
35.5 %
|
35.3 %
|
37.3 %
|
38.4 %
|
35.7 %
|
33.0 %
|
32.7 %
|
Adjusted Net (Loss)
Income
|
(562,799)
|
(696,424)
|
(790,309)
|
123,230
|
(367,455)
|
(1,085,937)
|
(1,009,452)
|
(886,788)
|
Adjusted
EBITDA
|
(317,434)
|
(486,244)
|
(575,464)
|
298,025
|
(171,189)
|
(857,764)
|
(737,010)
|
(708,297)
|
Adjusted EBITDA % of
total net
revenue
|
(6.3 %)
|
(8.9 %)
|
(13.4 %)
|
4.6 %
|
(3.4 %)
|
(21.3 %)
|
(28.3 %)
|
(20.9 %)
|
|
|
|
|
|
|
|
|
|
Run rate metrics and
growth:
|
|
|
|
|
|
|
|
|
Total net revenue –
last 12 months
revenue run-rate
|
21,198,922
|
21,179,938
|
19,724,699
|
18,031,254
|
15,007,540
|
12,877,630
|
10,281,886
|
13,777,419
|
E-commerce revenue –
last 12
months revenue run-rate
|
13,076,001
|
12,883,485
|
12,137,597
|
10,560,842
|
8,317,976
|
6,691,499
|
4,976,771
|
4,379,723
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
Net profit
(loss)
|
370,210
|
(353,552)
|
(923,966)
|
(492,803)
|
59,223
|
(1,580,635)
|
(884,034)
|
(2,208,618)
|
Add: non-cash
items
|
346,803
|
354,340
|
(11,095)
|
724,391
|
87,287
|
390,704
|
(94,643)
|
137,960
|
Cash
Earnings
|
717,013
|
788
|
(935,061)
|
231,588
|
146,510
|
(1,189,931)
|
(978,677)
|
(2,070,658)
|
Add: Net change in
non-cash working
capital
|
470,826
|
(646,138)
|
393,568
|
1,221,311
|
(2,322,046)
|
(32,427)
|
(628,959)
|
1,435,622
|
Cash flows
provided/(used) in
operating activities
|
1,187,839
|
(645,350)
|
(541,493)
|
1,452,899
|
(2,175,536)
|
(1,222,358)
|
(1,607,636)
|
(635,036)
|
Less: acquisition of
property and
equipment
|
(4,050)
|
(6,062)
|
(4,435)
|
(4,283)
|
(15,436)
|
(9,998)
|
(14,593)
|
(17,273)
|
Free Cash
Flow
|
1,183,789
|
(651,412)
|
(545,928)
|
1,448,616
|
(2,190,972)
|
(1,232,356)
|
(1,622,229)
|
(652,309)
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
Cash
availability
|
2,231,325
|
2,934,437
|
3,662,768
|
3,810,767
|
2,640,169
|
4,481,560
|
4,775,470
|
7,334,425
|
Working
capital
|
(551,302)
|
(59,214)
|
6,833,114
|
7,052,502
|
7,083,280
|
7,033,183
|
7,133,717
|
8,949,997
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
91,425,499
|
91,425,499
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
Closing share
price
|
0.11
|
0.11
|
0.11
|
0.14
|
0.10
|
0.13
|
0.12
|
0.25
|
Market
capitalization
|
10,056,805
|
10,056,805
|
10,206,147
|
12,989,642
|
9,278,316
|
12,061,810
|
11,133,979
|
22,731,873
|
Add: Total
debt
|
4,645,115
|
6,619,796
|
6,526,453
|
5,999,440
|
6,272,286
|
5,758,443
|
4,814,459
|
5,733,129
|
Less: Cash
|
2,007,396
|
2,884,427
|
3,570,681
|
3,695,677
|
2,603,395
|
4,315,918
|
4,653,792
|
7,289,957
|
Enterprise value
(EV)
|
12,694,524
|
13,792,174
|
13,161,919
|
15,293,405
|
12,947,207
|
13,504,335
|
11,294,646
|
21,175,045
|
|
|
|
|
|
|
|
|
|
Subsequent Events
On October 20, 2022, LXR announced
it was undertaking a strategic review process to assess the best
course of action for the Company's next phase of development and
growth. The Company retained Stifel Nicolaus Canada, Inc. as its
exclusive financial advisor to help assess and more fully
explore the strategic alternatives available to it, which may
include the possibility of raising of growth capital, a sale or
merger of the Company or an acquisition by the Company.
Since the onset of the COVID-19 pandemic in March 2020, the Company's transformation to a
digital first strategy has been successful. Total revenue in 2021
increased to $18.0 million, an
increase of 31% from $13.8 million in
2020, and our latest twelve months trailing total revenue as at
September 30, 2022 was $21.2 million. Year-to-date e-commerce revenue
now represents 62% of total revenue (as compared to under 10% in
2019), gross margin increased to 36% from pre-pandemic levels of
32%, and the Company's annual SG&A expenses have been
materially reduced from over $19.2
million in 2019 to a projected level of $9.5 million thus positioning the Company on a
path to future profitability.
There can be no assurance that the strategic review process will
result in any transaction or other alternative nor any assurance as
to its outcome or timing. The Company has not set a timetable for
completion of the review process and does not intend to
periodically or otherwise disclose developments related to the
process unless it determines that such disclosure is necessary or
appropriate.
About LXR
LXR 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 from Hermès, Louis Vuitton, Gucci, Prada and Chanel, among
other high-quality brands, 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.
Non-IFRS Measures
This press release refers to certain non-IFRS measures. These
measures are not recognized under IFRS, do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement IFRS measures by providing further understanding of
LXR's performance and results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of LXR's financial
information reported under IFRS. Management uses non-IFRS measures
including: "EBITDA," "Adjusted EBITDA," "Adjusted Net Loss", "Cash
Earnings","Free Cash Flow", "LTM Total Net Revenue", "LTM
E-commerce Net Revenue" and "Inventory Turns".
These non-IFRS measures are used to provide investors with
supplemental measures of LXR's operating performance and thus
highlight trends in LXR's core business that may not otherwise be
apparent when relying solely on IFRS measures. Management believes
that securities analysts, investors and other interested parties
frequently use non-IFRS measures in the evaluation of company
performance. Management also uses non-IFRS measures to facilitate
operating performance comparisons from period to period, to prepare
annual operating budgets and forecasts and to determine components
of management compensation. For a definition of EBITDA, Adjusted
EBITDA, and Adjusted Net Loss, Cash Earnings and Free Cash Flow,
and a reconciliation of these non-IFRS measures to IFRS measures,
see the above tables presented.
Caution Regarding Forward-Looking
Statements
Certain statements in this press release are prospective in
nature and constitute forward-looking information or
forward-looking statements within the meaning of applicable
securities laws (collectively, "forward-looking
statements"). Forward-looking statements include, but are not
limited to, statements concerning the financial results and
condition of the Company, expectations regarding market trends,
overall market growth rates and the Company's growth rates, future
objectives and strategies to achieve those objectives, including,
without limitation, e-commerce growth and penetration, the state of
wholesale demand, new store openings, store productivity, margin
improvements, and future acquisitions, as well as other statements
with respect to management's beliefs, plans, estimates and
intentions, and similar statements concerning anticipated future
events, results, outlook, circumstances, performance or
expectations that are not historical facts.
Forward-looking statements generally, but not always, can be
identified by the use of forward-looking terminology such as
"outlook", "objective", "may", "could", "would", "will", "expect",
"intend", "estimate", "forecasts", "project", "seek", "anticipate",
"believes", "should", "plans", "continue" or similar expressions
suggesting future outcomes or events and the negative of any of
these terms.
Forward-looking statements reflect management's current beliefs,
expectations and assumptions and are based on information currently
available to management, which includes assumptions about continued
revenues based on historical past performance, management's
historical experience, perception of trends and current business
conditions, expected future developments and other factors which
management considers appropriate. With respect to the
forward-looking statements included in this press release,
management has made certain assumptions with respect to, among
other things, the Company's ability to meet its future objectives
and strategies, the Company's ability to achieve its future
projects and plans and that such projects and plans will proceed as
anticipated, the expected growth of the Company's e-commerce
revenue, the expected number and timing of store openings or
closings in North America,
entering into new or expanded retail partnerships in North America, the ability of the Company to
continue to expand its wholesale activities, the Company's ability
to source products, the Company's competitive position in the
pre-owned luxury industry, and beliefs and intentions regarding the
ownership of material trademarks and domain names used in
connection with the marketing, distribution and sale of the
Company's products as well as assumptions concerning general
economic activity and market growth rates, currency exchange and
interest rates and competitive intensity.
Given the recent rise in global interest rates and inflationary
expectations, our results in the future may be materially affected
by the overall state of economic growth, customer demand and
spending (including the impact of recessionary fears), the level of
inflation, interest rates, regional labor market and global supply
chain constraints, world events, the rate of growth of online
commerce, and cloud services, and various other related factors. In
the latter part of Q3 2022, we experienced a slow-down in consumer
spending, this trend may continue into Q4 2022 and into 2023.
Generally, and especially given this unprecedented period of
uncertainty brought about by the COVID-19 pandemic (including any
variant) and geo-political events or acts of terrorism (such as the
military conflict between Russia
and Ukraine and the political
tensions arising from such conflict between Russia, the United
States and countries in Europe and elsewhere), readers are cautioned
not to place undue reliance on forward-looking statements, as there
can be no assurance that the future circumstances, outcomes, or
results anticipated or implied by such forward-looking statements
will occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve known and unknown risks and
uncertainties and other factors that could cause actual results to
differ materially from those contemplated by such statements.
Factors that could cause such differences include, but are not
limited to, those factors described under the headings "Risk
Factors" and "Management's Discussion and Analysis of LXR – Risk
Factors" in LXR's annual information form (the "Annual Information
Form"), and as described from time to time in the reports and
disclosure documents filed by the Company with the Canadian
securities regulatory agencies and commissions. Such list of risk
factors is not exhaustive of the factors that may impact the
forward-looking statements. These and other factors should be
considered carefully, and readers should not place undue reliance
on any of the forward-looking statements in this press release. As
a result of the foregoing and other factors, there can be no
assurance that actual results will be consistent with these
forward-looking statements.
All forward-looking statements included in and incorporated
into this press release are qualified by these cautionary
statements. Unless otherwise indicated, the forward-looking
statements contained herein are made as of the date of this press
release, and except as required by applicable law, the Company does
not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE LXRandCo, Inc.