LJ West Diamonds
LJ West Diamonds
LJ West Diamonds
Goto your account
Search Stories by: 


Articles from STERLING SILVER JEWELLERY (848 Articles), FASHION JEWELLERY (286 Articles)

An initial public offering for Lovisa is expected to be made by the end of the year
An initial public offering for Lovisa is expected to be made by the end of the year

Lovisa jewellery chain to go public

The owner of Australian fashion jewellery chain Lovisa is reportedly looking to take the business public within the next few months.

Multiple media reports have claimed that discussions have already taken place with fund managers and other investors with regards to an initial public offering (IPO) that is intended to be made by the end of the year.

It is believed that Lovisa – which falls under the portfolio of BB Retail Capital (BBRC), an investment company owned by retail veteran Brett Blundy – could be valued at up to $240 million. Reports speculated that the money raised would be used to fund the business’ continued expansion.

Brett Blundy, owner of BB Retail Capital
Brett Blundy, owner of BB Retail Capital

The retailer promotes itself as being able to “fill the void for high quality, fashion forward and directional jewellery”, with the BBRC corporate website stating, “We [Lovisa] are embarking upon the fastest specialty store expansion ever seen globally.

“After launching our first fashion jewellery and hair accessories retail store in April 2010, Lovisa can now be found in eight countries throughout the world with over 220 stores.”

According to industry-based research firm IBISWorld, annual revenue in the fashion jewellery and accessories market is expected to increase to $578 million in the 2014–15 financial year.

“The fashion jewellery retailing industry has achieved stellar growth over the past five years, having been somewhat unaffected by the tough trading conditions that have plagued other retail industries,” its latest report on fashion jewellery stated.

While IBISWorld’s research indicates a 2.1 per cent annual growth in this jewellery category, it did offer caution about the continued trend. “Over the next five years, the market for affordable fashion jewellery is anticipated to approach saturation point, as industry operators face growing competitive pressures from online jewellery stores, international retailers and department stores. As a result, industry revenue is expected to grow by only 0.2 per cent over the next five years, to be worth $584.9 million in 2019–20.”

It is estimated that more than 400 stores operate in this category and BBRC accounted for 12.6 per cent of the market with revenue in excess of $70 million for the 2013–14 financial year.

Diva confusion continues
It should be noted that some of those 220 plus Lovisa stores listed on the BBRC website previously operated under the trading name Diva – the retailer’s “sister” chain, whose operational status is currently unconfirmed.

Diva, which is also owned by BBRC, opened in 2003 and – seemingly much like Lovisa – experienced a meteoric rise, reaching 500 retail stores in less than a decade.

However, over the past few months, confusion has surrounded the retailer’s status, with a number of stores closing and others being converted into Lovisa outlets.

When Jeweller first broke the news in May about the Diva store closures, the BBRC website stated that the retailer had “over 500 stores in more than 20 countries – including China, Russia, Poland, Australia, New Zealand, Singapore, Thailand, Malaysia and South Africa”.

While the brand still appears on BBRC’s website, this copy has since been removed. The page now links to a Russian and Polish-based Diva website and states that the retailer has “a special focus on the key growth markets of Eastern Europe”.

Diva’s Facebook page also remains active, although the latest post, dated in May this year, outlined that the business was “currently in the process of consolidating our network”. The post included a phone number for the Diva support centre but this automatically diverted to a message bank when Jeweller attempted to make a phone call. The Australian URL provided is also now defunct.

Jeweller contacted BBRC to confirm details of the Lovisa IPO and to clarify the current status of Diva, however the company declined to comment.

More reading
Report: Fashion Jewellery Retailing in Australia
Diva jewellery stores shutting down, or maybe not!

LST Group

Read current issue

login to my account
Username: Password:
TW Steel Australasia
Duraflex Group Australia
© 2021 Befindan Media