Shares of ASX-listed Lovisa Holdings Limited (AU:LOV) gained 1.4% today after the retailer released its latest trading update. The company’s global comparable store sales grew 1.0% year-on-year for the first 20 weeks of FY25. Meanwhile, its total sales for this period rose 10%, driven by ongoing growth in the store network over the year.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Based in Australia, Lovisa is a fashion jewelry brand that caters to customers in over 30 countries worldwide.
Lovisa Eyes Continued Growth with International Expansion
Despite the sales growth falling behind market expectations, Lovisa is eyeing further growth via international expansion with 27 new stores opened so far in this financial year. This growth highlights the brand’s ambition despite challenges like increased competition, especially in Australia.
Lovisa’s total store network now stands at 927 locations across 49 markets, including three new franchise markets opened this year in the Ivory Coast, the Republic of Congo, and Panama. Compared to the same time last year, the company is now operating 91 more stores in nine additional markets.
Is Lovisa a Good Stock to Buy?
Over the past six months, Lovisa’s shares have dropped more than 15%. In June 2024, the stock took a significant hit following the announcement that CEO Victor Herrero would be stepping down next year. Herrero’s departure was a blow to investors, given his key role in driving the company’s global expansion. The market appears concerned that his exit could disrupt the company’s recent growth momentum.
Nonetheless, Lovisa’s long-term outlook remains strong, with a presence in 49 countries and the ability to adapt to evolving market conditions. Moreover, its target market of younger consumers, less affected by mortgages and debt, offers a stable and growing customer base.
As per the consensus rating on TipRanks, LOV stock has received a Hold rating, supported by a total of 11 recommendations. It includes three Buy, five Hold, and three Sell ratings. The Lovisa share price forecast is AU$31.10, which is 13.7% above the current price level.
