(«Bon Ton»), LXRandCo announced the anticipated closing of
Opened seven stores compared to three stores in the prior period, which was offset by canada goose uk shop closure of five and two stores respectively, to end the quarter at 135 stores compared to 47 stores;
Appointed Ms. Audrey Lara as Chief Financial Officer, which became effective April 1, 2018. Ms. («Bon Ton»), LXRandCo announced the anticipated closing of canada goose outlet canada locations in 14 Bon Ton stores. As previously disclosed, all sales personnel at such locations are employees of Bon Ton and as LXRandCo expects to reclaim all inventory and fixtures from these stores and deploy them to stores with other partners, LXRandCo anticipates no material financial canada goose factory outlet impact canada goose outlet from these closures.
«In what is a seasonally soft quarter, the first quarter of 2018 saw strong top line growth with revenue increasing 62% year over year, driven by the contribution of our retail store openings last year, as well as continued growth in our e commerce business» said Fred Manella, Vice Chair and Chief Development Officer, LXRandCo. «We continue to see strong demand for new locations from both existing and prospective retail partners but we will be prudent and selective with respect to those opportunities we plan on pursuing. We have several initiatives underway to enhance our future gross margin, and we expect selling, general and administrative expenses, as a percentage of revenue, to eventually return to their historical levels as the stores we opened last year continue to ramp to full productivity.»
LXRandCo’s incoming President and Chief Executive Officer commented, «We have an exciting business that remains uniquely positioned for long term success within the rapidly emerging vintage luxury sector. Upon formally assuming my new role as President and CEO in the coming weeks, I will immediately begin work with the LXRandCo team to undertake a thorough and complete review of current operations, growth canada goose uk black friday opportunities and financial position, with the objective canada goose outlet official canada goose outlet of evolving the LXRandCo model and strategy to realize the Company’s full potential, with a specific focus on disciplined growth, enhancing margin and returning to profitability. I look forward to communicating our path forward once finalized.»
Net revenue increased canada goose by 62.3% to $10.0 million in the three month period ended March 31, 2018 from $6.1 million in the three month period ended March 31, 2017. The increase in net revenue was primarily attributable to the increase in sales from LXRandCo operating 88 more stores at the end of canada goose outlet toronto factory the three month period ended March 31, 2018 compared to the number of stores at the end of the three month period ended canada goose uk outlet March 31, 2017. LXRandCo’s retail network consisted of 135 stores as at March 31, 2018 compared to 47 stores as at March 31, 2017. There were seven new store openings in the three month period ended March 31, 2018, all of them with an existing retail partner in the United States. LXRandCo closed five stores in the period, of which four were in the United States and one was in the Netherlands. The increase in net revenue was also due to Canada Goose Outlet revenue growth from existing wholesale customers to $0.9 million, as well as an increase in e Commerce revenue buy canada goose jacket to $0.7 million. E Commerce revenue as a percentage of net revenue was 7.0% in the three month period ended March 31, 2018 compared to 8.1% in the three month period canada goose factory sale ended March 31, 2017.
Gross profit margin was 23.7% in the three month period ended March 31, 2018, compared to 29.4% in the three month period ended March 31, 2017. The decrease in gross profit margin was due to several factors, including:
A general increase in the sourcing cost of certain brands in Japan that typically account for a large part canada goose outlet nyc of the Company’s sales;
The increase in promotional activity, resulting in a higher proportion of overall canada goose black friday sale sales taking place during promotional events in the period;
The addition to the omni channel network of new retail partners with higher licensing fees that started in fourth quarter of 2017;
An increase in the provision for potentially slow moving inventory given the increase in the size of the omni channel network in the previous period;
An unfavourable foreign exchange impact, mainly linked to a decrease in the value of the US Dollar as a large portion of sales are located in the United States; and,
Other factors canada goose outlet parka including changes in product mix, landed cost and shrinkage.
Expansion of the omni channel network by 88 stores during 2017, which increased salaries and related costs for in store staff by $2.7 million (228%) to $3.9 million for the three month period ended March 31, 2018 versus $1.2 million in the three month period ending March 31, 2017;
Increased headcount relating to head office and support personnel; and
Public company costs such as professional fees, directors’ fees, and stock based compensation that were not present in the three month period ending March 31, 2017.
SG canada goose outlet shop expenses were 62% of net revenue in the three month period ended March 31, 2018, compared to 44% of net revenue in the three month period ended March 31, 2017. Compared to the last quarter of the previous year, SG expenses are down by 14%, mainly due to a lower number of stores opened in the period with limited store opening costs and a lower stock based compensation expense. Most of the stores that were opened in the fourth quarter of 2017 are still ramping up, as the Company estimates that a store can take at least 12 months to reach full revenue capacity.
«Upon review, it is clear to me that the Company’s intent to meet the significant unmet demand for its stores led it to do so in an unprofitable and less than efficient manner,» said Mr. Goldsmith. «It is my intention to work with the team to identify our successful partner relationships, as well as new partnering opportunities, and to leverage my retail and online experience to develop a balanced action plan with a specific focus on disciplined growth, increased gross margin and profitability across all distribution channels. canada goose outlet online The Company expects to publicly communicate any resulting changes to its business model, growth strategy and/or outlook at the Company’s upcoming Annual Meeting of Shareholders to be held on June 13, 2018 in Montreal.
LXRandCo is a rapidly growing, international omni channel retailer of branded vintage luxury handbags and other personal luxury products.
Certain statements in this press release are prospective in nature and constitute forward looking information and/or forward looking statements within the meaning of applicable securities laws (collectively, «forward looking statements»). 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» or «continue», or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward looking statements in this news release include, but are not limited to, statements concerning future objectives and strategies to achieve those objectives, including, without limitation, store openings, as https://www.mild-und-leise.de 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 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, canada goose outlet new york city management has made certain assumptions with respect to, among other things, the Company’s ability to meet its goose outlet canada 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 in North America and internationally, entering into new and/or expanded retail partnerships in North America and internationally, the Company’s ability to source products, the Company’s competitive position in the vintage 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 canada goose outlet jackets economic and market growth rates, currency exchange and interest rates and competitive intensity.