Full Year 2024 Lovisa Holdings Ltd Earnings Call Transcript
Key Points
- Lovisa Holdings Ltd (ASX:LOV) opened 128 new stores, expanding its network to 900 stores globally.
- The company achieved a 17.1% growth in total sales despite a 2% decline in comparable store sales.
- EBIT increased by 21.2% to $128.2 million, and NPAT rose by 20.9% to $82.4 million.
- Gross margin improved by 110 basis points to 81%, reflecting effective pricing and inventory management.
- The company announced a final dividend of $0.37 per share, bringing the full-year dividend to $0.87, a 26% increase from FY23.
- Comparable store sales were down 2% year-over-year, indicating challenges in existing store performance.
- The Australasian region remains the most challenging market, with flat sales despite new store openings.
- Higher interest expenses due to increased borrowings and higher interest rates impacted NPAT.
- The pace of store rollouts slowed compared to the previous year, with 128 new stores versus 210 in FY23.
- Inflationary pressures, particularly on wages, have increased the cost base, impacting overall profitability.
Good morning, everyone, and thank you for taking the time to dial in.
On the call today you have our CFO, Chris Lauder; and myself, Victor Herrero, CEO. As you are aware, this morning, we published our full-year results to the ASX, and we would like to talk you through them.
I will now do a page turn through the highlights of the presentation and we are happy to take any questions at the end.
If we turn to page 4, we will talk through some of the highlights of the year. I am pleased today to present another solid result for the financial year 2024, which is again evidence of the strength of the team, the product, and the potential of the business.
Our store rollout continues through the year. We opened 128 new stores in the period, taking the store network to 900 stores at year end. This allowed us to deliver a strong growth in total sales of 17.1%, which was achieved despite comparable store sales being down 2% on last year.
Recently, we were able to open further seven new
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