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LXR Announced Mid-2nd Quarter 2021 Update

LXR Announces Mid-2nd Quarter 2021 UPDATE

Adjusted Total and E-commerce Net Revenue Up 290% and 205%, Respectively

Montreal, May 19, 2021 – LXRandCo, Inc. (LXR or the Company) (TSX: LXR, LXR.WT), a North American, digital-first omni-channel retailer of authenticated pre-owned luxury products, today provided a mid-second quarter update, which includes total net revenue and e-commerce net revenue estimates for the Company’s six-week period between April 1, 2021 and May 15, 2021 (Mid-2nd Quarter). Over this period, the Company realized total net revenue of $2.0 million, including e-commerce net revenue of $1.5 million, which represents growth of 290% and 205%, respectively over the same period last year. Total net revenue and e-commerce net revenue for the last twelve months (LTM) ending May 15, 2021 are estimated at $11.7 million and $6.0 million, respectively.

“The second quarter has opened up strongly for our e-commerce activities, which in the Mid-2nd Quarter, accounted for over 78% of total net revenue. Midway into the second quarter, we have already achieved 98% and 76% of the e-commerce net revenue and total net revenue generated in all of Q1-2021, respectively. As previously disclosed, we posted record e-commerce monthly net revenue in April with strong average order values. Given our current momentum, we believe May e-commerce net revenue may exceed that of April.” said Cam di Prata, LXR’s interim CEO.

Mid-2nd Quarter and LTM May

To facilitate greater comparability, the financial information provided herein for LTM is also provided on an adjusted basis[1]. The following are total net revenue and e-commerce net revenue highlights for Mid-2nd Quarter and LTM as compared to their respective prior periods in 2020:

Mid-2nd Quarter:

· Total net revenue — $2.0 million, an increase of 290%

· E-commerce net revenue — $1.5 million, an increase of 205%

· E-commerce average order value (AOV) — an increase of 2% to $937 per order

· E-commerce penetration — 78% of total net revenue

· Retail net revenue2 — $0.4 million, an increase from nil for the similar period last year

LTM:

· Total net revenue — $11.7 million, a decrease of 65% (+9%, adjusted)

· E-commerce net revenue — $6.0 million, an increase of 44% (+49%, adjusted)

· E-commerce AOV — an increase of 3% to $885 per order

· E-commerce penetration — 51% of total net revenue (58%, adjusted)

· Retail net revenue[2] — $5.7 million, a decrease of 81% (-21%, adjusted)

Preliminary Revenue by Channel

Six-weeks ended May 15

Last twelve months ended May 15

($000s)

2021

2020

Increase/

(Decrease)

2021

2020

Increase/

(Decrease)

Total net revenue

$1,974

$506

290%

$11,749

$34,012

(65%)

Less: Revenue from U.S. Bankrupt Partners

1,611

24,692

(93%)

Adjusted total net revenue1

1,974

$506

290%

$10,138

$9,320

9%

E-commerce net revenue

$1,536

$504

205%

$6,009

$4,181

44%

Less: Revenue from U.S. Bankrupt Partners

143

242

(41%)

Adjusted e-commerce net revenue1

$1,536

$504

205%

$5,866

$3,939

49%

AOV

$937

$921

2%

$885

$856

3%

Adjusted e-commerce penetration1

78%

100%

58%

42%


E-commerce Revenue and Growth Rates

One of the metrics we rely upon in gauging our progress is revenue growth based on the latest twelve months (LTM) of data as it normalizes for the effects of seasonality. As indicated below, our LTM compound annual growth rate (CAGR) in e-commerce net revenue over the last nine quarters was 47.3% and has been accelerating in 2021. The following table provides historical quarterly and LTM e-commerce net revenue and total net revenue for the most recently completed nine 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.

Total net revenue

E-commerce net revenue

E-commerce

penetration[3]

Actuals ($):

Quarterly

LTM

Quarterly

LTM

LTM

Q1 2019

8,756,063

38,982,959

604,023

2,294,094

6%

Q2 2019

8,558,435

38,254,627

959,525

2,654,334

7%

Q3 2019

8,314,615

36,493,740

985,288

3,057,856

8%

Q4 2019

14,440,173

40,069,286

1,175,652

3,724,488

9%

Q1 2020

6,097,604

37,410,827

975,592

4,096,057

11%

Q2 2020

1,430,284

30,282,676

802,658

3,939,190

13%

Q3 2020

2,857,718

24,825,779

885,669

3,839,571

15%

Q4 2020

3,391,813

13,777,419

1,715,804

4,379,723

32%

Q1 2021

2,602,071

10,281,886

1,572,640

4,976,771

48%

CAGR (9 quarters)

nmf. [4]

47.3%

Mid-2nd Quarter

1,973,6234

11,749,226

1,536,472[5]

6,009,190

51%

About LXR

LXRandCo is a socially responsible, digital-first omni-channel retailer of authenticated pre-owned luxury handbags and personal accessories. Since 2010, we have been providing consumers with authenticated branded luxury products 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.

Factors Affecting Our Business

We generally believe that our performance and future success depends on a number of factors that present significant opportunities for us. These factors are also subject to a number of inherent risks and challenges and should be read in conjunction with the risk factors highlighted in the “Risk Factors” section of our Management Discussion and Analysis filing and in our Annual Information Form for the year ended December 31, 2020 and as described from time to time in the reports and disclosure documents filed by us with Canadian securities regulatory agencies and commissions from time to time.

For further information, please contact:

Nadine Eap

Chief Financial Officer

+1 (514) 564-9993 ext: 037

nadine.e@lxrco.com



[1] Adjusted means excluding the net revenue from COVID-19-related bankruptcies of retail partners: Century 21, Stage Stores, Lord & Taylor and Stein Mart.

[2] Retail net revenue means revenue from our ‘shop-in-shop’ stores and wholesale activities. At Mid-2nd Quarter we had ten stores, only four of which were in operation due to COVID-19 lockdowns. In Q2-2020 we had 80 stores, all of which were closed due to Covid-19 lockdowns.

[3] E-commerce penetration means e-commerce net revenue divided by total net revenue.

[4] Not meaningful.

[5] For the six-week period between April 1 and May 15, 2021.