The share price of retail business Lovisa Holdings Ltd (ASX: LOV) has soared more than 15% today, compared to a 0.3% fall for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO).
Here's a look at the chart:
The soaring share price came after a trading update provided by the retailer after the market closed on Monday. It noted that trading had continued to be strong since the group's annual general meeting late in October, with same store sales growth for the year now in excess of 10%.
Here are some of the other highlights:
- It noted a stronger-than-expected gross margin of 77% so far this year, compared to 74% for the 2016 financial year (FY16)
- Earnings before interest and tax (EBIT) guidance for the half-year is $26 million to $28 million, compared to $17.9 million in the first-half of FY16
- Expanded its store network to 268, up from 250 stores as at the end of FY16
- Same store sales growth in the first half of FY16 was just 4.1% (compared to 'in excess of 10%' highlighted in yesterday's update)
The company's managing director, Shane Fallscheer, said: "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."
He continued, "We are nevertheless encouraged by the improvement in our results through focussing on ensuring a clean inventory position and merchandising offer which has resulted in stronger than expected margins."
Lovisa's share price has seen a rocky 12 months. The shares collapsed more than 40% late in January, eventually slipping below $2 per share in May, but the shares have since rebounded more than 100% to trade at $4 today.
Other retailers have also managed to buck the negativity on the market today, including JB Hi-Fi Limited (ASX: JBH), up 0.8%, and Baby Bunting Group Ltd (ASX: BBN), up 2.3%.
