FY 2022 Total Net Revenue of $20 Million, up 11% — Q4 2022, down
19%
FY 2022 E-commerce Net Revenue up 15% — Q4 2022, down
24%
E-commerce Penetration 60%
FY 2022
Break-Even Free Cash Flow
MONTREAL, March 31,
2023 /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 December 31, 2022 ("Q4 2022") and the
twelve-month period ended December 31,
2022 ("FY 2022").
"Despite a strong first nine months of 2022, which saw total net
revenue increase by 27% from the prior comparable period, total net
revenue in the fourth quarter experienced the full effects of a
weakening economy, which led to a slowing in consumer demand for
our products, particularly in Canada, and resulted in our posting a 19%
sales decline. This however was offset by strong gross margins,
which attained a record level of 44% in Q4 2022, and continued cost
containment measures, which allowed us to generate a level of near
break-even Free Cash Flow[1]. Going into 2023 and given the current
economic headwinds observed in the first quarter, we nonetheless
expect to continue growing our total net revenue for the year with
a focus on managing our costs to achieve near term profitability by
year-end." said Cam di Prata, Chief
Executive Officer of the Company.
Provided below are the financial highlights and a
discussion of our financial results for Q4 2022 and FY 2022,
which are to be read in conjunction with the Company's 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.
Overview of Results for the Three-Month Period Ended
December 31, 2022 ("Q4 2022"),
compared to the Three-Month Period Ended December 31, 2021 ("Q4 2021")
Selected financial highlights for the period include the
following:
- Total net revenue decreased 18.6% to $5.2 million as compared to $6.4 million.
- E-Commerce net revenue decreased 23.5% to $3.0 million, and e-commerce average order value
("AOV") increased by 4.3% to $965 per
transaction. E-Commerce net revenue as a proportion of total net
revenue ("E-commerce penetration") increased to 58.0% versus
54.5%.
- Retail net revenue was $2.2
million as compared to $2.5
million, a decrease of 10.6%. At year-end, we operated eight
stores, as compared to nine stores at the end of Q4 2021.
- Gross margin increased to a record level 44.0% as compared to
40.0% due primarily to increased e-commerce activity in the
period.
- Selling, general and administrative ("SG&A") expenses
decreased 7.2% to $2.6 million, or
49.0% of net revenue, as compared to $2.8
million, or 43.0% of net revenue.
- Adjusted Net Loss (a non-IFRS measure) was $0.3 million as compared to Adjusted Net Income
of $0.1 million. Q4 2022 Adjusted Net
Loss as a percent of total net revenue was (6.1%).
- We generated near break-even Adjusted EBITDA (a non-IFRS
measure) as compared to an Adjusted EBITDA profit of $0.3 million. Q4 2022 Adjusted EBITDA as a
percent of total net revenue was (1.0%).
- Cash earnings came in at a loss of $0.5
million as compared to $0.2
million.
- Free Cash Flow came in at near break-even levels compared to
positive Free Cash Flow of $1.4
million.
- Cash availability at the end of Q4 2022 totalled $2.9 million as compared to $3.7 million at the end of Q4 2021.
____________________
|
1 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 Year Ended December 31, 2022 ("FY
2022"), compared to the Year Ended December
31, 2021 ("FY 2021")
Despite the slowdown experienced in Q4 2022, FY 2022 revenue
performance was higher compared to prior year due primarily to
solid revenue growth in our e-commerce channel. This was aided by
increased gross margins, a strong U.S. currency and continued cost
containment measures, which generated reduced Cash Earnings (a
non-IFRS measure) and break-even Free Cash Flow (a non-IFRS
measure) for the year.
Selected financial highlights include the following:
- Total net revenue increased 11.0% to $20.0 million from $18.0
million.
- E-Commerce net revenue increased 15.0% to $12.1 million and e-commerce AOV increased 3.3%
to $950 per transaction. E-Commerce
penetration increased to 60.7% versus 58.6%.
- Retail net revenue was $7.9
million as compared to $7.5
million, an increase of 5.2%.
- Gross margin increased to 38.2% as compared to 37.6%.
- SG&A expenses increased 11.4% to $9.6 million, in line with the increase in
revenue, and was 48.2% of net revenue, as compared to $8.7 million, or 48.0% of net revenue in FY
2021.
- Adjusted Net Loss (a non-IFRS measure) was $2.4 million as compared to an Adjusted Net Loss
of $2.3 million.
- Adjusted EBITDA (a non-IFRS measure) remained unchanged and
came in at a loss of $1.4
million.
- Cash earnings came in at a loss of $0.7
million as compared to a loss of $1.8
million.
- Free Cash Flow (a non-IFRS measure) was break-even as compared
to Free Cash Flow of negative $3.6
million.
Selected Consolidated Financial Information
The following table summarizes LXR's recent results for the
periods indicated:
LXR
Consolidated
statements of loss and comprehensive loss
(in Canadian
dollars)
|
|
|
|
|
For the
three-month
periods ended
December 31,
|
|
For the years
ended
December 31,
|
|
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
5,223,973
|
6,415,527
|
|
20,007,368
|
18,031,254
|
Cost of
sales
|
|
|
|
2,924,446
|
3,847,575
|
|
12,368,547
|
11,253,183
|
Gross
profit
|
|
|
|
2,299,527
|
2,567,952
|
|
7,638,821
|
6,778,071
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
|
2,560,002
|
2,759,220
|
|
9,651,425
|
8,662,470
|
Depreciation of
property and equipment
|
|
|
|
80,435
|
68,471
|
|
311,786
|
277,506
|
Amortization of
intangible assets
|
|
|
|
2,034
|
4,674
|
|
12,882
|
42,482
|
Loss from operating
activities
|
|
|
|
(342,944)
|
(264,413)
|
|
(2,337,272)
|
(2,204,389)
|
Other income and
expenses
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
|
|
172,048
|
111,286
|
|
590,279
|
542,754
|
Foreign exchange (gain)
loss
|
|
|
|
211,595
|
126,740
|
|
(1,303,616)
|
142,172
|
Loss before income
taxes
|
|
|
|
(726,587)
|
(502,439)
|
|
(1,623,935)
|
(2,889,315)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
12,944
|
(9,636)
|
|
22,904
|
8,934
|
|
|
|
|
12,944
|
(9,636)
|
|
22,904
|
8,934
|
Net
Loss
|
|
|
|
(739,531)
|
(492,803)
|
|
(1,646,839)
|
(2,898,249)
|
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-month
periods ended
December
31,
|
|
For the years
ended
December
31,
|
|
|
|
|
2022
|
2021
|
|
2022
|
2021
|
Reconciliation of
Net Loss to Adjusted Net Loss
|
|
|
|
|
|
|
|
Net Loss
|
|
|
|
(739,531)
|
(492,803)
|
|
(1,646,839)
|
(2,898,249)
|
Adjustments to Net
Loss:
|
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
|
|
|
211,595
|
126,740
|
|
(1,303,616)
|
142,172
|
Stock-Based
Compensation Expense
|
|
|
|
210,316
|
643,057
|
|
520,824
|
748,838
|
Gain on disposals of
property and equipment
|
|
|
|
—
|
—
|
|
—
|
(1,250)
|
Information Technology
expense
|
|
|
|
—
|
—
|
|
62,479
|
—
|
Government Grant
(CEWS)
|
|
|
|
—
|
—
|
|
—
|
(177,361)
|
Gain on European
related balances
|
|
|
|
—
|
(163,272)
|
|
—
|
(163,272)
|
Store closing
costs
|
|
|
|
—
|
9,508
|
|
—
|
—
|
Adjusted Net
Loss
|
|
|
|
(317,620)
|
123,230
|
|
(2,367,152)
|
(2,339,614)
|
|
|
|
|
|
|
|
|
|
|
|
For the three-month
periods ended
December
31,
|
|
For the years
ended
December
31,
|
|
|
|
|
2022
|
2021
|
|
2022
|
2021
|
Reconciliation of
net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
Net Loss
|
|
|
|
(739,531)
|
(492,803)
|
|
(1,646,839)
|
(2,898,249)
|
Add: Amortization and
depreciation expense
|
|
|
|
82,469
|
73,145
|
|
324,668
|
319,988
|
Add: Finance
costs
|
|
|
|
172,048
|
111,286
|
|
590,279
|
542,754
|
Add: Income tax
expense/(recovery)
|
|
|
|
12,944
|
(9,636)
|
|
22,904
|
8,934
|
EBITDA
|
|
|
|
(472,070)
|
(318,008)
|
|
(708,988)
|
(2,026,573)
|
Adjustments to
EBITDA:
|
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
|
|
|
211,595
|
126,740
|
|
(1,303,616)
|
142,172
|
Gain on disposals of
property and equipment
|
|
|
—
|
—
|
|
—
|
(1,250)
|
Information Technology
expense
|
|
|
|
—
|
—
|
|
62,479
|
—
|
Loss on disposition of
subsidiaries
|
|
|
|
—
|
—
|
|
—
|
—
|
Stock-based
compensation expense
|
|
|
|
210,316
|
643,057
|
|
520,824
|
748,838
|
Government Grant
(CEWS)
|
|
|
|
—
|
—
|
|
—
|
(177,361)
|
Gain on
European-related balances
|
|
|
|
—
|
(163,272)
|
|
—
|
(163,272)
|
Store closing
costs
|
|
|
|
—
|
9,508
|
|
—
|
9,508
|
Adjusted
EBITDA
|
|
|
|
(50,159)
|
298,025
|
|
(1,429,301)
|
(1,467,938)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-month
periods ended December 31,
|
($)
|
2022
|
2021
|
Increase
(decrease)
|
Reconciliation of
Net Loss to Cash Earnings and Free Cash Flow
|
|
|
|
|
|
|
|
Net Loss
|
(739,531)
|
(492,803)
|
(246,728)
|
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
80,435
|
68,471
|
11,964
|
Amortization of
intangible assets
|
2,034
|
4,674
|
(2,640)
|
Amortization of
deferred financing costs
|
7,202
|
7,202
|
-
|
Stock-based
compensation expense
|
210,316
|
643,057
|
(432,741)
|
Unrealized foreign
exchange loss (gain)
|
(71,931)
|
987
|
(72,918)
|
|
228,056
|
724,391
|
(496,335)
|
Cash
Earnings
|
(511,475)
|
231,588
|
(743,063)
|
Net change in non-cash
working capital balances3
|
500,609
|
1,221,311
|
(720,702)
|
Cash flows (used)
generated in operating activities
|
(10,866)
|
1,452,899
|
(1,463,765)
|
Less: Acquisitions of
property and equipment
|
(2,150)
|
(4,283)
|
2,133
|
Free cash
flow
|
(13,016)
|
1,448,616
|
(1,461,632)
|
|
|
|
|
|
|
|
For the years ended
December 31,
|
($)
|
2022
|
2021
|
Increase
(decrease)
|
Reconciliation of
Net Loss to Cash Earnings and Free Cash Flow
|
|
|
|
Net loss
|
(1,646,839)
|
(2,898,249)
|
1,251,410
|
Non-cash
items:
|
|
|
|
Depreciation of
property and equipment
|
311,786
|
277,506
|
34,280
|
Amortization of
intangible assets
|
12,882
|
42,482
|
(29,600)
|
Amortization of
deferred financing costs
|
28,575
|
28,575
|
0
|
Stock-based
compensation expense
|
520,824
|
748,838
|
228,014
|
Gain on disposal of
property and equipment
|
-
|
(1,250)
|
1,250
|
Unrealized foreign
exchange loss
|
44,037
|
11,588
|
32,449
|
|
918,104
|
1,107,739
|
(189,635)
|
Cash
Earnings
|
(728,735)
|
(1,790,510)
|
1,061,775
|
Net change in non-cash
working capital balances4
|
718,865
|
(1,762,121)
|
2,480,986
|
Cash flows used
generated in operating activities
|
(9,870)
|
(3,552,631)
|
3,542,761
|
Less: Acquisitions of
property and equipment
|
(16,697)
|
(44,310)
|
27,613
|
Free Cash
flow
|
(26,567)
|
(3,596,941)
|
3,570,374
|
|
|
|
|
|
|
|
|
3 including unrealized foreign
exchange loss of $122,270 (2021 - $177,418)
|
4 including unrealized foreign
exchange of $1,277,275 (2021 - loss of $230,048)
|
Selected Quarterly Financial Information
The following table summarizes certain of our financial results
for the most recently completed eight quarters for which financial
statements have been prepared by us as a reporting issuer. This
unaudited quarterly information has been prepared in accordance
with IFRS. Due to the impact of the COVID-19 pandemic and other
factors such as seasonality, the results of operations for any
quarter are not necessarily indicative of the results of operations
for the full year.
($)
|
FY
2022
|
FY
2021
|
Consolidated
statements of loss
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Total net
revenue
|
5,223,973
|
5,006,612
|
5,481,267
|
4,295,516
|
6,415,527
|
4,987,628
|
4,026,028
|
2,602,071
|
E-commerce
revenue
|
3,028,134
|
2,669,366
|
3,268,570
|
3,149,395
|
3,958,670
|
2,506,850
|
2,522,682
|
1,572,640
|
E-commerce revenue % of
total net revenue
|
58.0 %
|
53.9 %
|
59.6 %
|
73.3 %
|
61.7 %
|
50.3 %
|
62.7 %
|
60.4 %
|
Gross margin
|
44.0 %
|
37.5 %
|
35.5 %
|
35.3 %
|
40.0 %
|
38.4 %
|
35.7 %
|
33.0 %
|
Adjusted Net (Loss)
Income
|
(317,620)
|
(562,799)
|
(696,424)
|
(790,309)
|
123,230
|
(367,455)
|
(1,085,937)
|
(1,009,452)
|
Adjusted
EBITDA
|
(50,159)
|
(317,434)
|
(486,244)
|
(575,464)
|
298,025
|
(171,149)
|
(857,764)
|
(737,010)
|
Adjusted EBITDA % of
total net revenue
|
(1.0 %)
|
(6.3 %)
|
(8.9 %)
|
(13.4 %)
|
4.6 %
|
(3.4 %)
|
(21.3 %)
|
(28.3 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Run rate metrics and
growth:
|
|
|
|
|
|
|
|
|
Total net revenue –
last 12 months revenue run-rate
|
20,007,368
|
21,198,922
|
21,179,938
|
19,724,699
|
18,031,254
|
15,007,540
|
12,877,630
|
10,281,886
|
E-commerce revenue –
last 12 months revenue run-rate
|
12,145,465
|
13,076,001
|
12,883,485
|
12,137,597
|
10,560,842
|
8,317,976
|
6,691,499
|
4,976,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
Net loss
|
(739,531)
|
370,210
|
(353,552)
|
(923,966)
|
(492,803)
|
59,223
|
(1,580,635)
|
(884,034)
|
Add: non-cash
items
|
228,056
|
346,803
|
354,340
|
(11,095)
|
724,391
|
87,287
|
390,704
|
(94,643)
|
Cash
Earnings
|
(511,475)
|
717,013
|
788
|
(935,061)
|
231,588
|
146,510
|
(1,189,931)
|
(978,677)
|
Add: Net change in
non-cash working capital5
|
500,609
|
470,826
|
(646,138)
|
393,568
|
1,221,311
|
(2,322,046)
|
(32,427)
|
(628,959)
|
Cash flows
provided/(used) in operating activities
|
(10,866)
|
1,187,839
|
(645,350)
|
(541,493)
|
1,452,899
|
(2,175,536)
|
(1,222,358)
|
(1,607,636)
|
Less: acquisitions of
property and equipment
|
(2,150)
|
(4,050)
|
(6,062)
|
(4,435)
|
(4,283)
|
(15,436)
|
(9,998)
|
(14,593)
|
Free Cash
Flow
|
(13,016)
|
1,183,789
|
(651,412)
|
(545,928)
|
1,448,616
|
(2,190,972)
|
(1,232,356)
|
(1,622,229)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
Cash
availability
|
2,868,350
|
2,231,325
|
2,934,437
|
3,662,768
|
3,810,767
|
2,640,169
|
4,481,560
|
4,775,470
|
Working
capital
|
(949,149)
|
(551,302)
|
(59,214)
|
6,833,114
|
7,052,502
|
7,083,280
|
7,033,183
|
7,133,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
91,425,499
|
91,425,499
|
91,425,499
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
92,783,155
|
Closing share
price
|
0.105
|
0.11
|
0.11
|
0.11
|
0.14
|
0.10
|
0.13
|
0.12
|
Market
capitalization
|
9,599,677
|
10,056,805
|
10,056,805
|
10,206,147
|
12,989,642
|
9,278,316
|
12,061,810
|
11,133,979
|
Add: Total
debt
|
5,252,143
|
4,645,115
|
6,619,796
|
6,526,453
|
5,999,440
|
6,272,286
|
5,758,443
|
4,814,459
|
Less: Cash
|
2,586,237
|
2,007,396
|
2,884,427
|
3,570,681
|
3,695,677
|
2,603,395
|
4,315,918
|
4,653,792
|
Enterprise value
(EV)
|
12,265,583
|
12,694,524
|
13,792,174
|
13,161,919
|
15,293,405
|
12,947,207
|
13,504,335
|
11,294,646
|
Multiple of EV/Last 12
months revenue
|
0.61x
|
0.60x
|
0.65x
|
0.67x
|
0.85x
|
0.86x
|
1.05x
|
1.10x
|
Subsequent Events
On March 9, 2023, the Company
received and accepted a term sheet from its lender to renew the
Credit Facilities until May 25, 2025
on substantially the same terms. The closing of the renewal of the
new Credit Facilities is expected on May 25,
2023.
On March 30 2023, we completed the
sale of 1,235 unsecured convertible debenture units for aggregate
gross proceeds of $1,235,000. Each
debenture unit is comprised of (i) one $1,000 principal amount unsecured convertible
debenture and (ii) 700 class B share purchase warrants. The
Convertible Debentures, which are not publicly-listed, are
convertible at a conversion price of $0.12 per class B share, bear interest at a rate
of 10.0% per annum and have a three-year maturity. Each warrant is
exercisable into one class B share at an exercise price of
$0.16 per class B share. These
warrants are not publicly-listed and will expire on March 30, 2025.
Effective April 1, 2023, the
Company's leadership team will be strengthened with the appointment
of Nadine Eap and Laura Swan to the newly-created roles of
Co-President & Chief Financial and Administrative Officer and
Co-President & Chief Revenue Officer, respectively. The
leadership team in 2023, which will still include Valerie Sorbie and Camillo di Prata, as Executive Chair and Chief
Executive Officer, respectively, will also include the addition of
two new members and will be made up of eight members.
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, 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 renew successfully the line
of credit and the long-term debt facilities, 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.
Generally, and especially given this unprecedented period of
uncertainty brought about by the 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.