Small-cap jewellery retailer Lovisa Holdings Ltd’s (ASX: LOV) share price has rocketed up 12.5% to $7.71 at the time of writing – one day post-AGM.
A successful operating year has seen Lovisa log a 24% increase in NPAT to $36 million, a revenue rise of 21% to $217 million, EBIT up 26% to $51.1 million with a net increase of 38 stores.
Citi has a current buy rating on Lovisa, with a price target of $10.75, but the broker has voiced concerns about comparable store sales declines of 0.9% although its international expansion plans appear to be tracking well.
Today’s share price rise is a welcome change for Lovisa, with some steep declines in the share price of late – Lovisa shares slid 22% at one point yesterday as its AGM played out.
Several retail stocks are looking like healthy options to get behind lately, with fellow small-cap retailer Noni B Limited (ASX: NBL) back on the incline after a short dip following 9 months of inclines.
Bapcor Ltd (ASX: BAP) also looks to be back in the black after a period of falls.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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