LOV +6.16%: one of only a handful of medium/large cap stocks to trade higher today against the broader market weakness, rallying on a strong FY22 result with positive outlook commentary. The jewellery retailer was 8% ahead of consensus at the revenue line, printing $459m, up 59% on FY22. EBIT was slightly ahead at $142.5m, and profit more than doubled on a comparable basis at $58m, a 10% beat to consensus. One of the key reasons we like Lovisa is its high gross margins which climbed to 78.9%, however, this was partly offset by higher marketing spend. Sales momentum has continued to into FY23, up 21% on last year for the first 7 weeks. It has also opened another 22 new stores in the new financial year to further boost performance.
MM remains bullish and long LOV
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