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Lovisa has announced positive financial results for FY21.
Lovisa has announced positive financial results for FY21.

Sky-high sales for fashion jewellery chain

Fashion jewellery retailer Lovisa has announced a $42.7 million to 20 June 2021, a 39.4 per cent increase compared to the previous year. Total sales reached $288 million – an increase of 18.9 per cent over FY20 ($243 million).

Despite the global pandemic, same-store sales increased by 8 per cent over FY20, while one of the largest growth sectors was the company’s e-commerce strategy, which delivered 178 per cent growth in FY21.

"The fashion jewellery chain started in Australia more than a decade ago, however 72 per cent of its current 544-store network is located outside of Australia"

Gross margin was up 77 per cent, while gross profit increased 18 per cent to $221 million.

The fashion jewellery chain started in Australia more than a decade ago, however 72 per cent of its current 544-store network is now located outside of Australia.

Lovisa is owned by the ASX-listed BB Retail Capital, founded by retail entrepreneur Brett Blundy.

Jeweller’s 2020 State of the Industry Report listed Lovisa with 143 stores in Australia; it now operates 158.

» 2020 State of the Industry Report: In-depth analysis of Australia's jewellery chain stores over a decade

Lovisa’s store count dramatically increased in December last year when it acquired German retail firm Beeline Group, which operated 114 fashion jewellery and accessories stores across Germany, Switzerland, the Netherlands, Belgium, Austria, Luxembourg, and France, under the brands Six and I Am.

Along with 22 new stores, 87 of the 114 Six and I Am outlets were converted to Lovisa, with the “remainder exited at or around the time of the handover”, the company stated.

This means that six new European markets were added to Lovisa’s expanding international coverage. 

As previously reported by Jeweller, the Beeline acquisition was for a nominal €70 ($AU113), with Lovisa taking over €3 million in bank guarantees associated with the leases on the Beeline Group stores.

According to the terms of the share purchase agreement, Lovisa is obliged to pay Beeline Group an additional €3 million from its existing credit facilities before 31 March 2022.

Interestingly, the company’s financial report detailed that its Vietnamese franchise partner was “terminated during the period, however we will continue to seek opportunities in this market.”

Lovisa's USA store count increased from 48 in FY20 to 63 by June 2021.

Lovisa caters for the budget-end of the jewellery market with its website declaring: “We are a fashion-forward jewellery brand that caters to every woman, with 150 new styles being delivered to stores each week. We give exceptional customer service and apply our core belief, ‘It’s about her, always’ to everything we do.”

It has been reported that Lovisa received about $12 million in JobKeeper and other wage subsidies for stood-down staff while, at the same time, did not pay rent while stores were closed.

Lovisa was listed on the ASX at $2 per share in December 2014.

 

More reading:
Lovisa plans European expansion after exiting Spanish market
Lovisa profits fall more than 47 per cent; exits Spanish market
Lovisa closes Australia, New Zealand stores
Lovisa defies retail downturn; plans new stores











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