Lovisa: FY23 earnings - Launch of a global brand

About the author:

Alexander Mees
Author name:
By Alexander Mees
Job title:
Co-Head of Research and Senior Analyst
Date posted:
25 August 2023, 7:30 AM
Sectors Covered:
Gaming and Retail

  • Lovisa (ASX:LOV) grew substantially in FY23 to finish the year with an 801-store network in 39 countries. We believe it plans to enter mainland China in FY24, paving the way for significant longer-term growth. We have increased our target price accordingly to (login to view) and reiterate our ADD rating.
  • LOV achieved 30% growth in sales and 17% growth in NPAT. Sales were in line with expectations, though higher finance costs meant NPAT was slightly below.
  • We have increased our finance cost estimates in FY24 and FY25, leading to 7% and 3% lower forecast NPAT. We have increased our long-run earnings estimates.

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