Close to $140 million has been wiped from the value of jewellery retailer Lovisa as investors reacted to its flat full year earnings guidance.
Shareholders flocked to the exits after the fashion jewellery chain predicted annual pre-tax yearly earnings of between $23.5 million and $25.5 million, on par with the $24.8 million figure in 2014/15.
Lovisa shares plunged in early trade and ended the day 36 per cent weaker.
The shares dropped $1.31 to $2.37, reducing the company's market value by $138 million to $249 million.
The reaction came despite Lovisa reporting a half yearly profit of $13.5 million, up eight per cent on the previous year.
Lovisa said growing sales had helped offset the weaker Australian dollar and like-for-like sales were up 4.1 per cent.
Lovisa was established in 2010 by retail millionaire Brett Blundy and its chief executive Shane Fallscheer, and within one year had opened 51 stores.
Lovisa now operates more than 200 stores in Australia, New Zealand, Singapore, Malaysia, South Africa and franchises in Saudi Arabia, the UAE, Kuwait and Oman.
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