Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Lovisa (ASX:LOV) Shares Are Down – It Could Be Time To Buy

Lovisa Holdings Limited (ASX: LOV) shares are down 4.5% following the release of their Annual General Meeting presentation. Are Lovisa shares now good value?

About Lovisa

Lovisa was established in 2010 and has rapidly become one of Australia’s leading fashion jewelry and accessory retailers. The company has been expanded its store footprint internationally with stores in more than 10 countries including the USA and the UK.

AGM Commentary

Lovisa Chairman Brett Blundy was unable to attend the AGM due to international commitments.

Managing Director Shane Fallscheer provided an overview of Lovisa’s FY19 result where total sales were up 15.3% in FY18. He then highlighted store growth, including discussing the international store rollout which is accelerating with a net increase of 64 stores. International stores now account for 61% of their total store network.

He said the recent US rollout is progressing well with 33 stores currently trading in the US across five states, including California, Texas and Florida. Mr Fallscheeer also said the French rollout is gaining momentum.

Trading Update and Outlook

Mr Fallscheer then said trading since the end of the financial year Lovisa has seen a continuation of the improvement seen in the second half, with comparable store sales for the 17 weeks to date up 2.3%.

However, currency headwinds have begun to have an impact and will continue to do so through FY20. They are continuing their focus on expanding the store network, and continue to expect the increase in a number of stores for FY20 to be higher than in FY19.

On this, 31 net new stores have been opened since 1 July 2019, taking the total store network to 421.

Are Lovisa Shares A Buy?

I like the potential for the international store rollout, however, some of that may already be priced into the shares, which may explain today’s share price movement. Investors may have been expecting more from the trading update.

Retail shares have had a good time of late with shares in JB Hi-Fi Limited (ASX: JBH) hitting an all-time high today, and shares in Kathmandu Holdings Ltd (ASX: KMD) and Premier Investments Limited (ASX: PMV) hovering near their all-time highs.

It hasn’t been all good news for retailers, of course, with furniture retailer Nick Scali Limited (ASX: NCK) recently providing a negative trading update.

The long-running Westpac-Melbourne Institute Consumer Sentiment Index tumbled more than 5% in October to its lowest reading since July 2015. Meaning, if you have doubts about consumers and their ability to spend, you may be more interested in one of companies in the free report below.

[ls_content_block id=”18457″ para=”paragraphs”]

Disclosure: At the time of writing David owns shares in Lovisa.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content