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Highlights

  • Lovisa, an ASX-listed global retailer of fast fashion jewellery, which opened 210 new stores across 12 countries in FY23.
  • LOV has the structure in place to expand its digital and physical store network.
  • LOV’s share price fell by 12.07% in the past one year and declined by 27.18% in the last six months.

Lovisa Holdings Limited (ASX: LOV) is an international retailer of fast fashion jewellery with a focus on retailing fashion jewellery and accessories for women. The company designs, develops, sources and merchandises all its branded products.

Acting on its commitment to expand its footprint, the jewellery retailer opened 210 new stores across 12 new markets in the financial year 2023 (FY23). Moreover, in the first seven weeks of FY24, the company rolled out 21 new stores and closed eight stores.

In FY23, the company registered nearly 33% revenue growth over the pcp (previous corresponding period) to AUD 596.5 million, while the EBIT increased by 31.47% on pcp to AUD 105.7 million. During the stated period, the statutory NPAT surged by approximately 20.07% to AUD 68.2 million, backed by a price hike in the third quarter of FY23 to counter the inflationary impact on costs.

Top 10 shareholders of LOV

The top 10 shareholders of LOV have around 48.16% stake in the firm, while the top four have 43.78% stake in the company. Blundy (Brett) and Herrero (Victor) have the maximum stake in the firm, with a shareholding of approximately 39.39% and 1.95%, respectively.

Recent business update

Through an ASX filing dated 14 September 2023, the company announced that its director, Victor Herrero, was allotted 1,742,857 shares on 12 September 2023 as performance rights were exercised. With this development, his total shareholding has reached 2,140,328 shares.

Outlook

The company informed that in the first seven weeks of FY24, comparable store sales dropped by 5.8% YoY. However, the total sales have increased by 13.1% annually.

LOV is focused on expanding its digital and physical store network, with a structure in place to expand the network in existing and new markets. The company expects the store rollout to advance at the existing phase.

Share performance of LOV

LOV shares closed 1.95% down at AUD 18.65 apiece, which is 4.31% higher than its 52-week low of AUD 17.88 apiece and 31.46% lower than its 52-week high of AUD 27.21 apiece.

The share price of LOV has dropped by 12.07% in the past one year and  by 27.18% in the last six months.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 03 October 2023. The reference data in this report has been partly sourced from REFINITIV.