Shares of jewellery retailer, Lovisa, have plunged further since January with the company’s chief executive asserting the company was caught by the falling dollar and had to slash prices to clear slow-moving stock.

The company’s shares plunged almost 36 per cent after it issued its forecast in January and shares have since fallen another 14 per cent to $2.03.

“The first half of the 2016 financial year was a challenging period for the business given the impact of the depreciating Australian dollar and the clearance of excess and underperforming lines prior to Christmas trade,” company CEO Shane Fallscheer said.

Fallscheer said, however, the company “was still able to grow revenues and earnings, with growing store numbers and positive like-for-like store sales growth of 4.1 per cent on a constant currency basis underpinning that growth.”

The fast-fashion retailer’s revenue was up 13 per cent to $82.6 million compared to the $73 million in the same period the previous year. The company’s EBIT is up 3 per cent to $17.9 million compared to last year’s $17.3 million in the same period.

The jewellery chain opened 12 new stores, but profit growth was more modest at eight per cent, to $13.5 million.

Lovisa said trading in the first seven weeks of the second half of the financial year was in line with its expectations, and it still expects to generate annual earnings of between $23.5 million and $25.5 million, on par with $24.8 million in 2014/15.

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