Jewellery and accessories retailer, Lovisa, has seen same store sales growth of 10 per cent since its AGM in October, with gross margin stronger than forecast and tracking at 77 per cent.
The strong results announced in a trading update today, were attributed towards reduced clearance activity and a continued focus on inventory management.
Lovisa now expects EBIT (earnings before interest and tax) for the half year to be in the range of $26m to $28m.
“Whilst we are very pleased with the year to date results, the greater part of the growth in same store sales has been price related as opposed to volume related,” said Shane Fallscheer, MD of Lovisa.
“We are nevertheless encouraged by the improvement in our results through focusing on ensuring a clean inventory position and merchandising offer which has resulted in stronger than expected margins.”
The jewellery chain has increased its store network to 268 stores, with seven stores expected to be trading in the UK by Christmas.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.