Lovisa shares rise on double-digit HY growth
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The news: Shares in Lovisa shot up nearly 10%, after the jewellery retailer recorded double-digit sales and profit growth in the first half of the financial year.
The numbers: Lovisa reported net profit of $53.5 million for the six months to December 2023, up 12% from the prior corresponding period. Comparable store sales were down 4.4% on 1H23 on the back of challenging trading conditions.
However, the company added 53 net new stores to its portfolio and revenue increased 18.2% year-on-year to $373 million.
Lovisa hiked its interim dividend of 50 cents per share from 38 cents per share a year ago.
Shares were trading 9.85% higher at $27.16 by 12:52pm AEDT and is at an all time high.
The context: Lovisa said the cost of its investment in new stores, paired with inflationary pressures during the period, resulted in higher operating costs. These were offset by a reduction in CEO long-term incentive expenses, as well as focus on price points and tight management of product cost and inventory.
Lovisa, launched by BB Retail Capital billionaire Brett Blundy in 2010, has 854 stores, including 175 in Australia, with a presence across Asia, Europe and the Americas. The Melbourne-based company opened stores in China and Vietnam for the first time in the December half, following the opening of stores in 12 new markets in FY23.
The source: ASX announcement
