19/09/2024 09:20

Lovisa Holdings Ltd (LOV) $32.42

We covered LOV in detail last month (here) when the stock was trading above $32, and our big issue was valuation. Nothing has really changed! After phenomenal growth, we’re cautious about chasing LOV with a new CEO and store roll-out that could miss expectations i.e. the coming years will likely be more challenging to mirror previous expansion.

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28/08/2024 09:32

Lovisa Holdings Ltd (LOV) $32.45

LOV’s business model is simple and effective. Lovisa sells cheap earrings, necklaces, bracelets, and other jewellery at over 80% gross profit margin. However, LOV was smacked -13% on Tuesday after reporting slightly softer than expected FY24 revenue plus a weaker trading update to start FY25, not ideal for a stock that had surged over +50% through 2024, making a fresh all-time high the day before the result. While their FY24 result was solid on most metrics, small misses are amplified by high valuations, and the first 8-weeks of FY25 is also tracking on the softer side.

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23/07/2024 09:26

Lovisa Holdings Ltd (LOV) $33.77

LOV has been an enormous success since COVID, delivering impressive growth, including opening 74 new stores in the 1H. That strong growth has pushed valuations well above its peers,  not necessarily a bad thing if they can maintain or accelerate that trajectory, however, we think delivering on this is likely to be more challenging. Ultimately,  we are not fans of the risk/reward into new highs, i.e. we like the stock but not today's price.

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28/06/2024 09:37

Lovisa Holdings Ltd (LOV) $33.01

LOV has bounced extremely well after its knee-jerk reaction after the hawkish CPI print. The spike under $30 on the announcement that CEO Victor Herrero would leave the company was the best window of opportunity in months, especially as we can see the stock above $35 in the coming FY.

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05/06/2024 09:20

Lovisa Holdings (LOV) $29.74

The retailer tumbled more than 10% on Monday after announcing CEO Victor Herrero will leave the company, though not before another 12 months in the role. Current Smiggle boss John Cheston will take on the role in June next year, his departure coming at an interesting time given Smiggle’s owner Premier Investments (PMV) revealed plans to demerge the business by January.

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10/05/2024 09:22

Lovisa Holdings Ltd (Lov) $30.92

Lovisa is the top-performing major retailer in 2024. It's currently up +25% in 2024 and slipped less than 1% on Thursday as the dominos fell around it. We have discussed LOV a few times this year; it’s a growth stock which surged higher in March after delivering margin expansion when analysts were anticipating contraction – it’s a quality operator the looks good into dips as opposed to above $30.

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08/03/2024 09:06

Lovisa Holdings Ltd (LOV) $31.28

LOV is a growth stock that keeps impressing/surprising us; it opened 74 new stores in fiscal 1H. The company’s recent result went down exceptionally well, with its 50c dividend a standout beat

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09/02/2024 09:27

Lovisa Holdings Ltd (LOV) $24.82

We have significantly underestimated the resilience of the Australian Retail Sector, where quality stocks like JB Hi-Fi (JBH) have already soared to all-time highs in 2024. The issue was the market, including ourselves, became too concerned with the pressures weighing on the Australian consumer from rising inflation and interest rates, but as we saw from Nick Scali (NCK) this week, things aren’t too bad and are now appearing to improve, supported by the large cohort of Australia’s that don’t have a mortgage and have benefitted from higher rates.

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25/05/2023 08:52

Lovisa Holdings Ltd (LOV) $22.04

Lovisa Holdings Limited (LOV) is a global, fast-fashion jewellery retailer which offers affordable fashion jewellery in a small-format store (~50-100sqm). We love their business model and have owned the stock in the past, selling above $24 in November last year. Shares were down -6.9% yesterday as the Retail Sector appeared to experience some profit-taking.

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22/02/2023 16:51

Lovisa Holdings (LOV) $23.85

LOV -0.87%: jewellery retailer Lovisa finished lower today in a choppy session as the market digested their first-half result. Revenue was a 5% beat at $315m while EBIT was a slight miss at $70m vs $71m expected. Margin pressure coming through weighed on the numbers today and concerned the market, particularly given the stock is on over 30x PE on FY23 expectations.

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