Lovisa Holdings Limited’s [ASX:LOV] share price fell 18.45% yesterday, following the release of its annual general meeting (AGM) presentation.
At time of writing, Lovisa shares are trading at $6.85 — this marks a 45.3% loss from its record high earlier this year on 15 June.
Lovisa’s less than expected results
The budget jewellery chain’s share price fell after reporting that same store sales had fallen 0.9%, less than the anticipated 3–5%.
As reported by TSMH, Lovisa chairman Michael Kay told investors at the AGM that the company has seen a ‘comparative weakness in the Australian market, which is still a disproportionately large part of our portfolio’.
‘We are cycling two years of very strong sales from fashion trends in our sector, which will make delivering the same levels of like-for-like sales growth more challenging in fiscal 2019.’
Lovisa’s future looks bright
Lovisa have said that the outlook looks ‘challenging’, but reminded investors that both Spring Races and Christmas are still to come, which play a large part in the company’s overall revenue.
The company will continue to invest in support structures for its store network expansion, expecting an increase in the number of stores for 2019 to be higher than the year prior. With seven new stores to be opened before Christmas across the US, France and Spain.
Despite yesterday’s fall, Lovisa’s shares are still up a whopping 201% from its original listing price in 2015. Any investors who got in early would still be laughing. But it sounds like — with Lovisa’s entry into new markets, including the US — there could still be potential for the company to continue its impressive growth.
For Money Morning
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