LOV.Lovisa Holdings Ltd.

[Joshuatree]

Congrats by the way to you guys/gals who chose this retail gem.

[LAC]

Wow just read the results now. Completely forgot about this one.

[percy]

Wow just read the results now. Completely forgot about this one.

I got so excited by the result I brought more at $4.31 today.
Slowly been building up my holding,until it is now my largest Aussie,just ahead of my PGC.

[vici]

Do you see this as a medium-long term holding?
They have posted a very good result this year, but the thing I am most nervous with fast fashion jewellery such as this is that there is a greater risk in getting the fashion/trends right. Haven't looked into it in detail but remember seeing the gross margin slip 5% in 2016, before bouncing back this year. In saying this they have had a fantastic 75-80% gross margin, and that allows some room for error/discounting..but the dependency in getting the trends/fashion side right makes me antsy all the same.

Competitive advantage-wise, it seems their low footprint stores helps keep rent down, as percy mentioned their payback period on new stores is phenomenal, seem to have had several years of growth and fit out of new stores seems very scalable, asking around the brand seems to appeal to a wide age group 15-50 with the appeal being low price product that looks good (enabling relatively guilt free impulse purchasing) - allowing the low price high volume business

[percy]

Yes a long term hold.
They are able to adapt to fashion changes immediately,and are doing so.They get new fashion stock into their stores quickly and have a record of clearing old stock.
The brand appeals to a bigger age group 13 to 75 although the target market is 15- 30s.
The result presentation gives a full picture of the business.
And plenty of growth. UK , Spain.and Europe currently.

[percy]

Final boarding call,the train is about to leave the station....Toot,toot.!..lol.
I hear Australian brokers ,Morgans,Macquaries,Bell Potter and Evans Partners have up dated their price targets to between $4.48 and $5.06.

Above posted on 02/05/2017 when the sp was $3.84.
Closed tonight at $4.80,up 25% in 4 months.!!

[percy]

I got so excited by the result I brought more at $4.31 today.
Slowly been building up my holding,until it is now my largest Aussie,just ahead of my PGC.

Posted 24-08-2017
Share price today is $5.43 ex divie.
Nice.

[percy]

I think the buyer at $5.76 is excited by the news LOV is opening a pilot store in USA.
But wait....the buyer at $5.85 must be even more excited.
But wait there's more,yes a big welcome to the astute buyers a $5.91.!!

[percy]

Yesterday's agm confirmed "all systems go".
Increased eps.
Increased cash flow.
Increased cash held.
Increased banking facility [for possible acquisitions].
Increased number of stores.
Increased margins.
With pilot stores in Spain and a first pilot store in the US, we remain "well positioned."

ps.Yesterday's agm addresses and presentation are well worth reading.

[macduffy]

Yes, an impressive performance, although shareprice has stagnated somewhat since release of those results. I don't see any mention of online sales though. Given the tendency for today's youngsters to buy "everything" online, I wonder if this might prove to be a constraint on their growth and future profitability?