Global expansion fuels hefty profit boost for Lovisa

(Source: lovisajewellery/Facebook)

Global expansion in both existing and new markets has helped drive Australian fashion jewellery chain Lovisa’s first-half profits up by 31.9 per cent.

For the half year, group sales grew 44.8 per cent to $315.5 million while tax-paid profit reached $47.7 million. Comparable store sales increased by 12.5 per cent.

The business opened 86 new stores during the half taking its network to 715 stores globally. It has expanded to seven new markets and it now operates in Namibia, Mexico, Italy, Hong Kong, Romania, Hungary, Poland, Canada and Colombia through a franchise model.

Lovisa CEO, Victor Herrero, said he is pleased with the results and added: “We have been able to increase the momentum of our store rollout during the half which has again delivered us strong top-line sales growth and combined with continued double-digit comparable store sales has resulted in an excellent financial result for the period.”

For the first seven weeks of the second half, store sales have increased by 12.3 per cent and the retailer opened two new stores in Peru.

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