Lovisa shares tumble as 1H profit misses estimates
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More news: Lovisa shares slumped in morning trade after the jewellery retailer’s 2.8% uptick in first-half statutory profit fell short of market estimates.
Shares were down 13.1% to $26.94 at 11am AEDT.
What they said: “On an underlying basis the business is delivering +20% earnings growth which helps justify the multiple the stock trades on,” said Citi analyst Sam Teeger.
“The business is delivering exceptional results in its key offshore growth markets and the quality of the rollout has improved,” Teeger said.
“We are interested to know how patient Lovisa will be with Jewells given it is weighing materially on profitability and would like to understand how it plans to turn around its relatively weaker performance in ANZ where emerging competition is increasing.”
Lovisa reports 2.8% uptick in 1H profit as sales hit $500m
The news: Jewellery retailer Lovisa reported a 2.8% increase in first-half net profit to $58.4 million, after seeing sales surge 23.3% compared to the prior corresponding period.
The numbers: The result missed average forecasts of $68.1 million, according to Visible Alpha.
Total revenue was up 23.3% to $500.7 million, topping analysts’ estimates of $491.1 million. Underlying revenue was up 22.7%.
The company declared an interim dividend of 53 cents per share, up from 50 cents a year prior but below consensus estimates of 54 cents.
The context: Lovisa attributed the revenue jump to continued growth in its store network. The group opened 85 new stores during the half-year period, taking the network to 1,095 stores across more than 50 markets. Meanwhile, comparable stores sales were also up 2.2% year on year.
Trading for the first seven weeks of the second half saw total sales up 21.5% compared to the same period in FY25, with comparable store sales up 1.6%.
What they said: “We continue to focus on opportunities for expanding both our physical and digital store network, with structures in place to drive this growth in existing and new markets and formats, and expect store rollout momentum to continue,” the company said.
The source: ASX
