Lovisa share price charges to record high on 60% sales boost

Lovisa is performing very strongly in FY 2023…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Lovisa Holdings Ltd (ASX: LOV) share price is on course to end the week with a solid gain.

In early trade, the fashion jewellery retailer's shares are up over 4% to a record high of $26.85.

This means the Lovisa share price is now up almost 35% since the start of the year.

Three woman pulling faces.

Image source: Getty Images

Why is the Lovisa share price charging higher?

Investors have been buying Lovisa's shares again following the release of a trading update ahead of the company's annual general meeting.

According to the release, global comparable store sales for the first 19 weeks of FY 2023 continued the strong trajectory from the first 7 weeks and were up 16.1% on FY 2022 year to date.

Management notes that comparable store sales continue to be measured based on stores open and able to trade. Stores temporarily closed due to government-imposed lockdowns in either year are not included in the calculation for that period.

Total sales for the period are up 60% over the prior corresponding period.

Store expansion continues

Lovisa also revealed that it continues to expand its store network, with 47 net new stores opened for the year to date. This comprises 61 new stores opened and 14 closures.

This has taken Lovisa's store network to 676 stores across 26 countries, including four new markets opened in recent months. These include Canada and Poland, which opened at the end of FY 2022, and Namibia and Hong Kong in FY 2023.

This means that since this time last year, the company is currently trading over 100 more stores in 5 additional markets.

But it won't be stopping there! Lovisa's first stores in Italy, Mexico, and Hungary are due to open in the coming weeks.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A woman in jeans and a casual jumper leans on her car and looks seriously at her mobile phone while her vehicle is charged at an electic vehicle recharging station.
Consumer Staples & Discretionary Shares

Why fuel prices could be quietly powering this ASX car stock higher

But it’s not a simple case of “EV demand up, share price up”.

Read more »

A group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottles in front of them cheering on one of their teams on a phone.
Consumer Staples & Discretionary Shares

Guess which ASX stock is closing in on its multi-year high

Tabcorp shares are back near their highs after a strong 12-month run.

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Consumer Staples & Discretionary Shares

Morgans just initiated coverage on this consumer discretionary stock with a buy rating

This newly listed ASX stock has strong upside, according to Morgans.

Read more »

Three women laughing and enjoying their gambling winnings while sitting at a poker machine.
Consumer Staples & Discretionary Shares

Down 20%, are these ASX gaming stocks ready to surge?

If sentiment stabilises, these ASX shares could bounce back up to 65%.

Read more »

A family sits on their couch, eyes glued to the television.
Consumer Staples & Discretionary Shares

Consumer discretionary shares to target for a long-term rebound

These stocks are all trading below fair value.

Read more »

A woman sits with a glass of milk in front of her as she puts a finger to the side of her face as though in thought while her eyes look to the side as though she is contemplating something.
Consumer Staples & Discretionary Shares

Should you buy the dip on A2 Milk shares today?

Here’s the latest price target for beaten down A2 Milk shares from Citi.

Read more »

CEO leading a board meeting.
Consumer Staples & Discretionary Shares

This ASX retail stock is sliding after a surprise leadership announcement

Universal shares slip after a surprise CEO handover adds fresh uncertainty.

Read more »

Woman with a concerned look on her face holding a credit card and smartphone.
Consumer Staples & Discretionary Shares

Why are A2 Milk shares sinking 18% today?

Let's see why investors are selling off this stock on Monday.

Read more »