LXRandCo revenue jumps 82% in third quarter, net loss widens

By

Jennifer Braun

Published
Nov 10, 2017

LXRandCo reported strong third quarter results on Thursday driven by a tripling of its store count.
 

The Montreal-based omnichannel retailer, known for carrying branded vintage luxury handbags and accessories, reported net revenue of $8.8 million, up 82 percent from $4.8 million in the three-month period ended September 30, 2017.
 
Gross profit increased by 99 percent to $2.9 million, from $1.4 million, while net loss was still $1.4 million in the three-month period, compared to a net loss of $0.1 million.

The increase in net revenue was primarily driven by a larger store network including 57 more stores compared to the number of stores in the same period of 2016, as well as an increase in e-commerce revenue. E-commerce revenue increased to 4.1 percent of net revenue from 3.5 percent.
 
The Canadian company has been on a steady growth path this year launching plans to double its store count by the end of the year for a total of 120 stores. LXRandCo’s existing retail network has since expanded to 128.  
 
The company has equally expanded its vintage luxury product offering to include apparel and shoes for both women and men. 
 
"We look forward to building on our strong momentum throughout the remainder of the year and into 2018. As we do, profitability remains a top priority. As per our plan, we are investing in the short-term to capitalize on our unique market opportunity and rapidly build out our store network and add new partners. We expect to improve profitability in 2018 as our recently opened stores ramp to full productivity and we start to benefit from the operating leverage in our business," explained Fred Mannella, Chief Executive Officer, LXRandCo.