Lovisa Holdings Ltd. · ASX:LOV
Lovisa — H1 2023 Earnings Presentation
18 slides from Lovisa's earnings presentation, Feb 22, 2023
Slide 1: Lovisa Holdings Limited 2023 Half Year Results
Lovisa Holdings Limited 2023 HALF YEAR RESULTS VICTOR HERRERO CHIEF EXECUTIVE OFFICER CHRIS LAUDER CHIEF FINANCIAL OFFICER
Slide 2: Forward-looking statements disclaimer
Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward- looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about future events of Lovisa
Slide 3: Contents
CONTENTS 1. STRATEGY RECAP 2. HALF YEAR OVERVIEW 3. FINANCIAL OVERVIEW 4. TRADING PERFORMANCE 5. COST OF DOING BUSINESS 6. CASHFLOW AND BALANCE SHEET 7. STORE GROWTH 8. DIGITAL UPDATE 9. TRADING UPDATE AND OUTLOOK 10. SUMMARY 11. APPENDICES 3
Slide 4: Strategy Recap
STRATEGY RECAP Our strategic plans remain in place OUR PAST OUR FUTURE OUR PRESENT Continued expansion both in existing and 13 years ago we set out to develop a fast new markets with the same successful We are well on the way in establishing a fashion jewellery concept to meet disciplines and criter
Slide 5: Half Year Overview
HALF YEAR OVERVIEW1 • Strong sales performance with global comparable store • US market up to 155 stores at half year end, and Europe sales for the period up 12.5% compared to HY22 now 194 stores trading • Total sales up 44.8% on HY22 reflecting strong comparable • Cash flow from operations $115.8m,
Slide 6: Financial Overview
FINANCIAL OVERVIEW1 HY23 HY22 • Continued strong profit growth as all markets traded well ($000) Variance (Statutory) (Statutory) • Revenue up 44.8% on HY22 with comparable store sales up Revenue 315,483 217,822 44.8% 12.5% • CODB well managed with focus on investment to support next Gross profit 25
Slide 7: Trading Performance - Sales
TRADING PERFORMANCE - SALES Sales growth momentum continues 340 320 300 • Global Sales Revenue up 44.8% to $315.5m, both from comparable 280 260 stores and network growth, comparable store sales up 12.5% on HY22 240 Sales ($AUDm) 220 200 • Benefit of price increases in 2HFY22 continued to contribute
Slide 8: Trading Performance - Gross Margin
TRADING PERFORMANCE - GROSS MARGIN Historical Gross Margins Gross margin improvement delivered 90.0% 80.0% • Gross profit increased 48.4% to $253.2m 70.0% • Gross Margin was 80.3%, benefiting from price increases in 2HFY22 and strong focus on optimising 60.0% gross margins 50.0% • Currency impacts o
Slide 9: Cost of Doing Business
COST OF DOING BUSINESS1 Cost pressures well managed 60.0% CODB % Sales1 • CODB well managed with continued investment made into growing the business 50.0% • Inflationary pressures continue, however have been offset by top line growth to date 40.0% • Total CODB up 65% on the prior half year, includin
Slide 10: Cash Flow
CASH FLOW Continued investment in store rollout (A$000s) HY23 HY22 • Cash flow from operating activities $115.8m, up 49.4% • Capital expenditure of $31.8m includes 101 new Cash from operating activities 115,837 77,545 company owned stores built for the period as the store Net interest paid (4,999) (
Slide 11: Balance Sheet
BALANCE SHEET Balance Sheet remains strong (A$000s) HY23 HY22 Net Cash 24,038 52,694 • Inventory holdings increased reflecting store network growth and stock Receivables 22,803 12,450 holdings to support coming store openings, with clean stock position at Inventories 58,314 42,873 the end of the per
Slide 12: Store Growth
STORE GROWTH Global Rollout accelerating with 86 net new stores opened Store number growth Country HY23 FY22 HY22 Var 6 mths New Stores Closures Var YOY • 103 new stores opened in the period offset by 17 Australia 163 154 158 9 11 (2) 5 New Zealand 26 25 24 1 1 0 2 closures including 5 relocations,
Slide 13: Digital Update
DIGITAL UPDATE • Continued focus on enhancement of website performance, user experience and fulfilment capability • Progress made however still a lot of opportunity for improved execution and performance • Investment made into digital partnerships, with Lovisa now live with online marketplaces in Eu
Slide 14: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • Trading for the first 7 weeks of the second half saw comparable store sales for this period up 12.3% on FY22. Total sales for this period are 24% up on the same period in FY22 • Since the end of the half-year, we have opened our first 2 stores in new franchise market Per
Slide 15: Summary
SUMMARY • Sales performance strong for the period, both in comparable stores and from new store rollout • Global expansion continued with net 86 new stores opened during the period, more than for the whole of FY22, and a total network of 715 stores at half year end • 7 new markets opened during the
Slide 16: Appendices
APPENDICES 16
Slide 17: ASIC Regulatory Guide Disclosing non-IFRS financial information
APPENDIX 1 ASIC Regulatory Guide 230 Disclosing non-IFRS financial information In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Lovisa Holdings Limited is required to make a clear statement about the non-IFRS information included in the Profit announcement and presentati
Slide 18: Appendix - Profit and Loss Statement
APPENDIX 2 – PROFIT AND LOSS STATEMENT1 Impact of HY23 HY23 HY22 HY22 Variance Variance ($’000) application of (Statutory) (pre AASB 16) (Statutory) (pre AASB 16) (Statutory) (pre AASB 16) AASB 16 Revenue 315,483 315,483 217,822 217,822 44.8% 44.8% Cost of sales (62,287) (62,287) (47,165) (47,165) 3