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Highlights
  • Lovisa Holdings has witnessed 13.1% YoY growth in total sales in the first seven weeks of FY24
  • In FY23, the company opened 210 new stores across 12 new markets
  • The company is committed to expanding its digital and physical store network in the upcoming years
 

Lovisa Holdings Limited (ASX: LOV) is an ASX-listed fast fashion jewellery retailer engaged in retailing  fashion accessories and jewellery for women.

With a market capitalization of AUD 2.13 billion, the company delivered 33.09% growth in revenue to AUD 596.5 million in the financial year 2023 (FY23). The period saw a 31.47% YoY rise in EBIT to AUD 105.7 million and 20.1% YoY grow in NPAT to AUD 68.2 million, driven by the hike in prices in the third quarter to manage inflationary impact on operating costs.

During the reported period, LOV opened 210 new stores across 12 new markets.

Recent business update

Through an ASX update dated 12 October 2023, the company informed that over 34k performance rights, expiring on 30 September 2023, were issued on 6 October 2023 under an employee incentive scheme.

Through an ASX filing dated 14 September 2023, LOV shared that Victor Herrero, the company’s director, was allotted over 1.74 million shares on 12 September 2023 upon exercising performance rights. With this development, Herrero’s shareholding in the firm increased to more than 2.14 million shares.

Outlook

In the first seven weeks of FY24, comparable store sales dropped by 5.8% YoY, and total sales increased by 13.1% YoY. The period saw the opening of 21 new stores and the closure of eight stores.

The company is committed to expanding its digital and physical store network and expects store rollout to continue at the existing pace.

Share performance of LOV

LOV shares closed 1.70% up at AUD 19.760 apiece on 7 November 2023. Including this, LOV’s share price has dropped by 17.63% in the past 12 months and has declined by 21.84% in the last six months.

The 52-week range of LOV is AUD 17.010 – 27.210 apiece.

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 07 November 2023. The reference data in this report has been partly sourced from REFINITIV.