Lovisa eyes UK

Lovisa-oJewellery retailer Lovisa has reported increased company revenue, while eyeing off the UK for a store rollout.

Revenue increased by 27.1 per cent to $134.3 million with gross profit increased by 28.7 per cent to $103.5 million.

NPAT of $17.6 million was $1.2 million ahead of the prospectus forecast.

Lovisa CEO, Shane Fallscheer, says the companies cost of doing business reduced from 62 per cent to 54 per cent. This was attributed to the closure of low turnover stores in Australia, the addition of stores overseas and operational leverage provided by it’s support centre team based in Melbourne.

The Melbourne-based specialist in fast-fashion jewellery is keen to expand into potentially lucrative markets in the northern hemisphere.

Fallscheer says board members have agreed to run a pilot of three to five stores in the UK, with the first to open in Leeds in early December.

“We have been active in the market looking for the right opportunities,” he told shareholders at Lovisa’s annual general meeting on Thursday.

“Negotiations are well advanced to open another two to four stores in the UK by end Q3 FY16 (third quarter of the 2016 financial year).”

Lovisa has more than 200 stores spread across Australia, New Zealand, Singapore, Malaysia, South Africa, and franchises in Saudi Arabia, the UAE, Kuwait and Oman.

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