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Lovisa has temporarily closed most of its international store network in the wake of the coronavirus pandemic.
Lovisa has temporarily closed most of its international store network in the wake of the coronavirus pandemic.

Lovisa closes Australia, New Zealand stores

International fashion jewellery retailer Lovisa has indefinitely closed its entire store network in Australia, New Zealand and South Africa in response to new government coronavirus restrictions.

The New Zealand government implemented a full nationwide lockdown effective from Thursday 26 March, with residents advised not to leave their homes except for essential supplies and exercise.

Meanwhile, at the time of publication, the Australian federal government had recommended non-essential retailers cease trading - though they were still legally able to remain open by complying with strict social distancing protocols.

"Whilst some governments have provided timing for the current containment measures to end, we are not currently in a position to know when our stores will be able to re-open"

Australia and New Zealand make up Lovisa’s largest market, accounting for more than 50 per cent of revenue. According to its FY19 annual report, Lovisa operated 154 stores in Australia and 22 in New Zealand.

The company had previously shuttered its US, UK, France, Spain and Malaysia stores. Its Singapore locations were still operating at the time of publication, alongside franchised stores in the Middle East (Kuwait, the United Arab Emirates, Saudi Arabia, Oman and Bahrain) and Vietnam.

Lovisa management confirmed that no date had been set for when the stores would resume trading.

“Whilst some governments have provided timing for the current containment measures to end, we are not currently in a position to know when our stores will be able to re-open,” a statement said.

It added that all retail employees would be “stood down” for the duration of the closure, and administrative staff would either be stood down temporarily or made redundant. Lovisa is estimated to employ more than 1,300 people worldwide.

In its most recent half-yearly report, published in February, the company reported a 22.2 per cent increase in revenue, to $162.8 million. Its gross profit rose 19.1 per cent, to $128.5 million.

The statement said the company is “not in a position to reliably estimate the financial impact” of the coronavirus pandemic on its business. Dividend payments to investors, due to be paid in April, have been suspended for six months.

Lovisa follows a number of local and international jewellery retailers who have closed doors in recent weeks, including Michael Hill and Pandora.

 

More reading:
Michael Hill International closes all stores indefinitely
Coronavirus forces drastic measures in watch and jewellery industry











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