Our turn-around investment thesis for this stock contends that LX can leverage its product-sourcing competitive advantage to supply a post-Covid spike in demand from wholesale channel partners plus its own Ixrco.com online store. Multiple quarters are now proving out three key themes;
1) LXR’s strategic shift to online is a success, 2) the wholesale channel remains a key differentiator and reported nother revenue beat, and 3) despite digital-growth spending, the business model is now profitable. Guidance is again edging higher, and the top end remains very achievable. We see 50-100% revenue growth, positive BITDA/net income and wholesale customer adds as catalysts. For such a profile, this stock is surprisingly inexpensive at 0.5 revenue and in our view has near-term upside of +100%.