Shares in Lovisa have lost some of their sparkle, sliding nearly 10 per cent after the jewellery retailer flagged weaker sales in the current financial year as well as a change at the top.
Net profit for the year to June 30 was up 23.8 per cent to $36 million, while revenue was up 21.4 per cent to $217 million, thanks to the continued roll out of new stores in Australia and overseas.
Lovisa's store network increased to 326 stores, a net increase of 38 locations, with the retailer opening its first stores in the US and France and increasing its presence in Spain, South Africa and the UK.
"It's pleasing that we were able to continue to invest into the structures to support our global expansion and at the same time continue to deliver strong results from existing markets," managing director Shane Fallscheer said in a statement.
"This leaves us well placed to execute on our future growth strategy."
However, the company said it would be "challenging" to continue store sales momentum comparable to the last four years.
"Whilst we continue to maintain positive comparable store sales growth for the first 7 weeks of FY19, we are currently trading below our long-term target range of three to five per cent," Lovisa said.
The company forecasts it will go into Christmas trading with at least 7 stores in the US, France and Spain, while work is also underway for entry into e-commerce.
Lovisa also announced its co-founder Brett Blundy will assume the role of Chairman from November 1, replacing Michael Kay, who will retire after two years in the role.
Mr Blundy is chairman and founder of private investment group BBRC, which has a retail presence of more than 800 stores across 15 countries, and he is also a non-executive director of Accent Group and Aventus Retail Property Fund.
Lovisa is also looking for a new chief operating officer and a non-executive board director, among other senior leadership positions.
By 1530 AEST, Lovisa shares were still down 8.4 per cent at $10.31, in a weak Australian market.
STORE ROLLOUTS BOOST LOVISA SALES:
* Net profit up 23.8pct to $36m
* Revenue up 21.4pct to $217m
* Final dividend of 14 cents per share, fully franked, up from 7.6 cents a year ago
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