Lovisa Holdings Ltd. · ASX:LOV
Lovisa — FY2024 Earnings Presentation
21 slides from Lovisa's earnings presentation, Aug 27, 2024
Slide 1: Lovisa Holdings Limited 2024 Full Year Results
Lovisa Holdings Limited 2024 FULL YEAR RESULTS VICTOR HERRERO CHIEF EXECUTIVE OFFICER CHRIS LAUDER CHIEF FINANCIAL OFFICER
Slide 2: Forward-looking statements
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 H
Slide 3: Contents
CONTENTS 1. FINANCIAL OVERVIEW 2. TRADING PERFORMANCE – SALES & GROSS MARGIN 3. EARNINGS 4. CASHFLOW & BALANCE SHEET 5. STORE GROWTH & NEW MARKETS 6. OPERATIONAL UPDATE 7. STRATEGY RECAP 8. TRADING UPDATE AND OUTLOOK 9. SUMMARY 10. APPENDICES 3
Slide 4: FY24 Full Year Overview
FY24 FULL YEAR OVERVIEW • Total sales up 17.1% on prior year reflecting continued • 7 new markets for the financial year and presence now in growth in the store network 46 markets • Global comparable store sales for the period down 2.0% • Store network growth across all regions, including compared t
Slide 5: Financial Overview
FINANCIAL OVERVIEW ($000) (Statutory) FY24 FY23 Variance Profit growth continues • Revenue up 17.1% on FY23 with comparable store sales down Revenue 698,664 596,456 17.1% 2.0% for the financial year Gross profit 565,790 476,714 18.7% • Gross Margin % again strong at 81.0%, up 110bps EBITDA 223,519 1
Slide 6: Trading Performance – Sales
TRADING PERFORMANCE – SALES TOTAL SALES (A$M) Sales growth continues $700 $650 $600 $550 • Global Sales Revenue up 17.1% to $699m, with continued strong Sales ($AUDm) $500 $450 store network growth offsetting impact of negative comparable $400 store sales in the period $350 $699 $300 $596 $250 • Imp
Slide 7: Trading Performance – Gross Margin
TRADING PERFORMANCE – GROSS MARGIN Further gross margin improvement 90.0% Historical Gross Margins 80.0% • Gross profit increased 18.7% to $565.8m 70.0% • Gross Margin was again strong up 110 basis points to 60.0% 81.0% 50.0% • Gross Margin growth delivered on top of the 100 basis points increase in
Slide 8: Earnings
EARNINGS $140.0 EBIT GROWTH $m Earnings growth maintained $120.0 $100.0 • EBIT up 21.2% to $128.2m, NPAT up 20.9% to $82.4m $80.0 • CODB higher due to growth in the store network and inflationary $60.0 $128.2 pressures, however offset by CEO LTI expense lower at $12m $105.7 compared to $27m in the p
Slide 9: Cash Flow
CASH FLOW (A$000s) (Statutory) FY24 FY23 Continued investment in store rollout Cash from operating activities 240,405 188,377 Net interest paid (17,585) (12,844) • Cash flow from operating activities $240m, up 27.6%, Tax paid (35,306) (34,369) reflecting improved supplier payment terms and strong Ne
Slide 10: Balance Sheet
BALANCE SHEET (A$000s) FY24 FY23 Balance Sheet remains strong (Statutory) Cash 30,520 31,650 • Inventory holdings increased in line with store network growth, with Receivables 19,445 23,202 clean stock position at the end of the year Current Tax Receivables 11,521 210 Inventories 68,622 60,098 • Inc
Slide 11: Store Growth
STORE GROWTH Global expansion continued with 128 new stores opened Store number growth Country FY24 FY23 New Stores Relocations Closures Var YOY Australia 178 168 13 (1) (2) 10 • 128 new stores opened in the period offset by 29 New Zealand Singapore 28 16 27 16 1 2 0 0 0 (2) 1 0 closures/relocations
Slide 12: New Markets
NEW MARKETS CHINA Po Park Guangzhou VIETNAM Saigon Centre IRELAND William Street Galway 12
Slide 13: New Franchise Markets
NEW FRANCHISE MARKETS ECUADOR Quicentro SENEGAL Sea Plaza GUADELOUPE Frebault 13
Slide 14: Operational Update
OPERATIONAL UPDATE DIGITAL AND E-COMMERCE • We continue to focus on our execution of e-commerce and our journey towards being an omni-channel retailer • Ongoing investment in customer experience and support systems including a new product information management system • Presence on a number of e-com
Slide 15: Strategy Recap
STRATEGY RECAP Our strategic plans remain in place OUR PAST OUR FUTURE OUR PRESENT Continued expansion both in existing and 14 years ago we set out to develop a fast We are well on the way in establishing a new markets with the same successful fashion jewellery concept to meet global brand disciplin
Slide 16: Trading Update
TRADING UPDATE • Trading for the first 8 weeks of FY25 saw comparable store sales for this period up 2.0%. Total sales for this period are up 12.7% on the same period in FY24. • Since the end of the year, we have opened 10 new stores with 2 closures, with total store count at 908 including our first
Slide 17: Summary
SUMMARY • Sales performance solid for the year, with growth from new store rollout offsetting weaker comparable store sales to deliver 17.1% growth • Improving comparable sales trend, positive in the 2 nd half of the year • Global expansion continued with 128 new stores opened during the period, and
Slide 18: Appendices
APPENDICES 18
Slide 19: Appendix 1 – 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 20: Appendix 2 – Profit & Loss Statement
APPENDIX 2 – PROFIT & LOSS STATEMENT FY24 FY23 ($’000) Variance Statutory Statutory Revenue 698,664 596,456 17.1% Cost of sales (132,874) (119,742) 11.0% Gross profit 565,790 476,714 18.7% Employee expenses (206,281) (182,377) 13.1% Property expenses (41,487) (25,313) 63.9% Distribution expenses (25
Slide 21: Thank You
THANK YOU