Australian jewellery store chain Lovisa has seen a 15% decline in its share price to $30.76 (£15.76) despite posting a 21% increase in net profit to $82.4m (£42.2m) and a 17.1% increase in revenues to $699m (£358.1m) in FY24.
The jewellery brand, which operates more than 900 stores globally, stated that its growth in revenues were largely driven by its store openings. However, comparable store sales were down 2% compared with FY23.
The group’s EBITDA was up 24.2% to $223.5m (£114.5m), while its gross profit increased 18.7% to $565.8m (£289.9m) and its gross margin was up 110 points to 81.0%.
Additionally, Lovisa’s Europe sales increased 26.9% to $230.4m (£118.05m), reflecting continued strong performance and new store growth of 50 new stores during the period.
In the UK, the brand’s store count grew from 44 in FY23 to 50 in FY24.
Victor Herrero, Lovisa CEO, said: “The company has once again delivered strong sales, gross margin and profit growth at the same time as investing in the structures to support our steady global expansion.This positions us well to continue our growth in both existing and new markets.”
