Lovisa Holdings Ltd (ASX: LOV) posted solid results for FY24, including a 17.1% increase in revenue to $699 million and a 20.9% rise in net profit to $82.4 million.
Despite this, the company’s share price dropped by over 15% following the announcement, closing at $31.066.
Global Expansion and Store Growth
Lovisa expanded its operations throughout FY24, opening 128 new stores, bringing its global store count to 900 across 46 countries. Key markets for store growth included the United States, Australia, and France. In addition, the company opened a 5,000 square metre warehouse in Columbus, Ohio, to support its growing operations in the Americas, where it now serves over 200 stores.
During the year, Lovisa converted 14 franchise stores in the UAE to company-owned outlets and closed 14 other stores globally. The company also entered new markets by opening its first franchise stores in Ivory Coast and the Republic of Congo.
In addition to its physical store network, Lovisa expanded its online presence through partnerships with platforms such as Tmall, ASOS, and The Iconic, further developing its omni-channel retail approach.
Omni-Channel Growth
Alongside physical store expansion, Lovisa grew its online presence by partnering with major e-commerce platforms such as Tmall, ASOS, and The Iconic, further integrating its omni-channel approach.
Outlook for FY25
In the first eight weeks of FY25, Lovisa opened 10 new stores, bringing its total to 908 stores. During this period, total sales increased by 12.7% compared to the same time last year, with comparable store sales rising by 2%.
Implications for the Jewellery Industry
Lovisa’s continued global expansion, both physically and online, demonstrates the growing demand for affordable jewellery and the importance of omni-channel strategies. Jewellers may look to Lovisa’s approach to managing growth and navigating cost pressures as a guide for adapting to the evolving retail landscape.
