The Lovisa Holdings Ltd (ASX: LOV) share price is down 4% after the jewellery business announced a trading update for the 2024 financial year to date before its annual general meeting (AGM) today.
This update is for the first 20 weeks of FY24, covering sales performance, the company's store network, and current trading conditions.
FY24 trading update
The ASX retail share revealed that global comparable store sales for the first 20 weeks of FY24 were down 6.2% compared to the same period in FY23.
However, total sales for the same period were up 17% year over year as the company benefited from continued growth in its store network.
Expansion of the store footprint has been a key focus for the company in the first 20 weeks of FY24, with Lovisa opening a net of 35 new stores in the financial year to date. The net figure represents 55 stores being opened and 20 closures, including 12 related to the conversion of its United Arab Emirates franchise business to company-owned.
How many stores does it have now? Lovisa has grown its store network to a total of 836 globally, spread across 40 markets. The company has opened one new franchise market in FY24 so far — Ecuador in September.
Compared to this time last year, Lovisa is currently trading from 160 more stores and it's operating in 14 additional markets.
In FY23, the company added 172 net new stores, ending the 2023 financial year with a total of 801 stores. At June 2023, its two biggest markets were the US with 190 stores and Australia with 168 stores.
Lovisa revealed it's expecting to open its first stores in Vietnam and mainland China over the coming month.
Lovisa share price snapshot
Prior to today's update, the Lovisa share price was down 25% over the past year, though it was up 1.9% in the last month, as we can see on the chart below. That recent gain has now been erased.
