Lovisa (ASX:LOV) share price takes a hit on further store closures

More temporary store closures for Lovisa as COVID-19 cases increase.

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The Lovisa Holdings Ltd (ASX: LOV) share price has slipped lower today after the company provided a business update.

By the close of trade, the jewellery retailer’s shares were trading 1.1% lower ate $15.29. Earlier in the day, the Lovisa share price had reached as low as $14.95 – representing a 3.3% fall on the prior day’s closing price.

So, let’s flick through the latest market release pushing Lovisa shares downward.

COVID-19 woes impact the Lovisa share price

According to the release, the company has continued to experience disruptive trading conditions and temporary store closures. This is the consequence of government restrictions following the uptick in COVID-19 cases in recent months.

Additionally, temporary store closures are still occurring across a large number of locations. For instance, 36 stores across Victoria remain temporarily closed since 16 July. This is in addition to 32 stores in Greater Sydney, and 8 stores in South Australia.

Meanwhile, 28 stores in Malaysia have been temporarily closed since early June due to local government responses to rising coronavirus cases.

Lastly, the company has imposed temporary store closures at 6 locations in South Africa during the civil unrest and rioting across the country. The news has weighed on the Lovisa share price today.

To the disappointment of shareholders, the duration of these closures will rest upon government advice as the situation proceeds.

Investors might have noticed that the total number of temporary store closures has climbed to 102. This is an increase from the 61 stores notified to the market as being closed at the end of May 2021.

Still rather fetching to brokers

Despite the disruptions to the company’s bricks and mortar segment, leading broker Morgans recently put a buy rating on the Lovisa share price. The broker holds a price target of $17.95 on the ASX-listed retailer.

As a fellow Fool covered a couple of weeks ago, Lovisa is focused on developing its digital capabilities. This is becoming increasingly important during the current trading environment.

Morgans sees the Lovisa share price as an attractive play for reopening.

Should you invest $1,000 in Lovisa right now?

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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