Lovisa recovers from rough start to deliver strong FY21

Jewellery retailer Lovisa has delivered strong growth over FY21, with revenue up 18.9 per cent to $288 million and earnings before interest and tax 39 per cent up to $42.7 million.

While the business’ first quarter was heavily impacted by store closures in Victoria, the remainder of the year saw improved performance and positive comparable store sales, with a gross margin of 77 per cent delivering a net profit of $27.7 million – 43 per cent up on last year.

“We’re pleased with the performance of the business for the year, in particular with the sales performance we saw across most markets since the end of [the first quarter] with solid trading despite the continued global challenges we face,” said Lovisa managing director Shane Fallscheer.

Cost of doing business was tightened as well, at 56 per cent of sales, despite higher logistics costs due to increased freight costs.

And while the business’ international store rollout has slowed due to the onset of the pandemic, Lovisa hit 544 stores worldwide at the end of FY21 and is now refocusing on finding new opportunities for store openings in its markets.

Online continued to deliver growth while new stores were put off, however, with total digital sales up 178 per cent on the year prior. And online will continue to be an important channel for the business for as long as its stores run the risk of being closed.

Lovisa currently has 106 stores currently shuttered due to lockdowns: 82 in Australia, and 24 in New Zealand.

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