Australian jewellery store chain Lovisa has seen its share price tank despite recording a $102 million dollar increase in sales for 2023/24.
The fast fashion retailer on Tuesday said its sales for the 12 months to June 30 increased by 17.1 per cent to $698.7 million, largely due to it opening 128 new stores globally during that time. Same-store sales were down two per cent.
Lovisa's net profit after tax was up 20.9 per cent to $82.4 million.
The retailer failed to deliver on ambitious projections from the last full-year reporting season, which projected store rollout to be at 914 stores at the end of 2023/24.
It fell short with 900 locations globally after opening new markets in Ireland, mainland China and Vietnam, and new franchise markets in Ecuador, Senegal, Guadeloupe and Gabon.
RBC Capital Markets analyst Wei-Weng Chen said the result was largely in line with expectations for key financial metrics, but its sales so far in 2024/25 have been below consensus expectations.
Lovisa said sales for the first eight weeks of the new financial year were up 12.7 per cent, compared to the same period in 2023/24.
Consensus expectations are for a 18.7 per cent rise in sales for the first half, Mr Chen said.
Early Tuesday afternoon Lovisa shares were down 13.3 per cent to a two-year low of $32.34.
