Lovisa rings in profit growth

Women’s jewellery retailer Lovisa has confirmed that increasing sales have counterbalanced the falling Australian dollar and raised profit.

Inside Retail reports that the business earned a net profit of $13.5 million in the six month lead up to New Year ’s Eve on 2015, according to unaudited financial results. This has jumped by eight per cent on a year earlier.

Lovisa’s like-for-like sales (sales in the same period in different years) increased by 4.1 per cent as 11 new stores opened. Although margins were affected by increased costs from the weaker Australian dollar, greater sales performance pulled through.

The company says it expects its pre-tax earnings to be between $23.5 million and $25.5 million this year to June, compared to the $24.8 million in 2014/15.

Lovisa stated that its first store in the UK was meeting performance expectations, and there are plans to open more outlets. The business has more than 200 company owned stores across Australia, New Zealand, Singapore, Malaysia, South Africa, as well as franchises in Saudi Arabia, the UAE, Kuwait, and Oman.

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