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Lovisa reveals dulled half-year performance

Jewelry retailer Lovisa has emerged from the half year at a loss, with revenue down 9.8 per cent to $146.9 million and EBIT down 23.6 per cent to $30.9 million.

The luxury market was hit particularly hard by the change in consumer buying behaviour, with more Aussies focusing on only essential purchases, with extra spending largely going toward upgrading home offices and living spaces.

Overall, however, the business’ management was happy with the way the half finished.

“We’re pleased with the performance of the business for the half year, in particular with the improved sales performance we saw through Q2 despite the continued global challenges we face with the impact of Covid,” managing director Shane Fallscheer said.

With Victorian stores reopening, and customers increasingly feeling comfortable returning to shopping centres, the business saw a bump in trade during the second quarter. And the Australian and New Zealand markets were a standout, with comparative store sales in the region strong – though the impact of lockdowns led total sales in the region down 0.4 per cent.

All stores are currently trading.

Lovisa did see strong uptake in its digital offering, with global online sales growth up 335 per cent for the half, and said it will “continue to invest” in growing it further.

For the foreseeable future, however, the business remains uncertain of the global economic environment.

Given the state of the pandemic, and how quickly markets have swung back and forth in the last year, the business said it was “not in a position” to provide an outlook beyond an update on the first seven weeks of Q3 – which saw comparable store sales up 12 per cent.

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