Lovisa Holdings Ltd. · ASX:LOV
Lovisa — FY2023 Earnings Presentation
22 slides from Lovisa's earnings presentation, Aug 24, 2023
Slide 1: 2023 Full Year Results
Lovisa Holdings Limited 2023 FULL YEAR RESULTS VICTOR HERRERO CHIEF EXECUTIVE OFFICER HEADING 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 H
Slide 3: Contents
CONTENTS 1. STRATEGY RECAP 2. FULL YEAR OVERVIEW 3. FINANCIAL OVERVIEW 4. TRADING PERFORMANCE – Sales & Gross margin 5. COST OF DOING BUSINESS 6. CASHFLOW AND BALANCE SHEET 7. STORE GROWTH & NEW MARKETS 8. OPERATIONAL 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: Full Year Overview
HEADING FULL YEAR OVERVIEW1 • Strong sales performance with global comparable store • US market up to 190 stores at year end, and Europe now sales for the period up 6.3% compared to FY22 224 stores trading • Total sales up 30.0% on FY22 reflecting strong comparable • Cash flow from operations $188m,
Slide 6: Financial Overview
F I N AHNEC AID AILN O GV E R V I E W 1 ($000) FY23 FY22 Variance FY22 Variance Continued strong profit growth (Statutory) 52 weeks 53 weeks 52 weeks • Revenue up 33.1% on FY22 (52 weeks) with Revenue 596,456 458,712 30.0% 448,245 33.1% comparable store sales up 6.3% Gross profit 476,714 361,828 31.
Slide 7: Trading Performance - Sales
TRADING PERFORMANCE - SALES Sales growth continues • Global Sales Revenue up 30.3% to $596m, both from comparable stores and network growth • Strong first half benefited most markets, second half growth slower as we cycled strong prior year performance • Europe sales reflects continued new store gro
Slide 8: Trading Performance – Gross Margin
TRADING PERFORMANCE HEADING – GROSS MARGIN Gross margin improvement delivered • Gross profit increased 34.8% to $476.7m (52 week basis) • Gross Margin was 79.9% • Clean inventory position • Currency impacts on gross margin becoming less pronounced with significant cash flows now generated in USD and
Slide 9: Cost of Doing Business
COST H OEFAD DOI NI N GG B U S I N E S S Cost pressures well managed • CODB well managed with continued investment made into growing the business • Total CODB up 36% on the prior full year, including $27m Long Term Incentive expense associated with the CEO LTI package • Excluding this item and on a
Slide 10: Cash Flow
CASH FLOW Continued investment in store rollout (A$000s) • Cash flow from operating activities $188m, up 24.8% FY23 FY22 (Statutory) • Capital expenditure of $60.7m includes 201 new Cash from operating activities 188,377 150,622 company owned stores built for the period as the store Net interest pai
Slide 11: Balance Sheet
HEADING BALANCE SHEET Balance Sheet remains strong (A$000s) (Statutory) FY23 FY22 • Inventory holdings increased at a slower rate than sales and store Cash 31,650 34,153 network growth, with clean stock position at the end of the period Receivables 23,412 22,383 Inventories 60,098 50,215 • Increase
Slide 12: Store Growth
S T O RHEE AGDRIO NWG TH Global expansion continued with 210 new stores opened Store number growth • 210 new stores opened in the period offset by 38 closures Country FY23 FY22 New Stores Relocations Closures Var YOY including 7 relocations, with constant focus on keeping Australia 168 154 17 (2) (1
Slide 13: New Markets
NEW MARKETS POLAND Korona Kielce ITALY Il Centro Arese BOTSWANA Galo Mall 13
Slide 14: New Markets
NEW MARKETS SPAIN NEVADA GRANADA TAIWAN ZHONGXIAO EAST ROAD L gxencrr MOROCCO socco ALTO TANGER 14
Slide 15: New Markets
NEW MARKETS NORTHERN IRELAND Belfast HONG KONG Telford Plaza PERU Plaza Trujillo 15
Slide 16: Operational Highlights
OPERATIONAL HIGHLIGHTS LOGISTICS • New 5000m 2 company operated warehouse opened in Wroclaw, Poland to replace our existing European third party logistics warehouse servicing the European region • This facility provides us with improved flexibility and improved service levels for our stores than the
Slide 17: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • Trading for the first 7 weeks of FY24 saw comparable store sales for this period down 5.8% on FY23. Total sales for this period are up 13.1% on the same period in FY23. • Since the end of the financial year, we have opened 21 new stores, with 8 closures including 6 UAE f
Slide 18: Summary
SUMMARY • Sales performance strong for the financial year, both in comparable stores and from new store rollout, however slower in the second half • Global expansion accelerated with net 172 new stores opened during the year, and a total network of 801 stores at year end • 12 new markets opened duri
Slide 19: Appendices
APPENDICES
Slide 20: 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 21: Appendix 2 – Profit & Loss Statement
APPENDIX 2 – PROFIT & LOSS STATEMENT FY23 Impact of FY23 FY22 FY22 FY22 Variance Variance Variance FY22 Statutory ($’000) Statutory application of (pre AASB 16) Statutory 53rd Week (pre AASB 16) (pre AASB 16) (Statutory) (Statutory) (pre AASB 16) 52 Weeks 52 Weeks AASB 16 52 Weeks 53 Weeks 53 Weeks
Slide 22: Thank You
THANK YOU