Australian fashion jewellery chain Lovisa has recorded a 17 per cent increase in sales in the first 20 weeks of the financial year.
This increase in sales was attributed to the expansion of the store network, which includes 55 new stores opened and 20 closed worldwide. Same-store sales declined by six per cent during the same period.
Lovisa now operates more than 830 stores in 40 markets, with plans to expand into Vietnam and China before the end of the year.
That said, it hasn’t been all smooth sailing for Lovisa, as shareholders voted against the company’s pay report for a third consecutive year at the latest annual general meeting.
Lovisa has come under scrutiny for ‘excessive remuneration’ over the past year, with a particular focus on the $30 million pay of CEO Victor Herrero.
Brett Blundy, chairman of Lovisa, told The Australian Financial Review that the company’s future was the key priority.
“We deal with issues of remuneration as we deal with all the issues that come before us. In assessing what we think is the right thing to do in order to continue to drive the company forward. The caveat on that is we won’t always get it right,” he said.
Shareholders also voted against the re-election of Tracey Blundy, sister of Brett Blundy, who was appointed to the board as a non-executive director in 2014.
He added: “What shareholders don’t see is the effort that goes on behind what we have achieved in the last 12 or 18 months, organically growing stores one store at a time.”
Losiva notched a record 33.1 per cent increase in revenue for the past financial year amid expansion into 12 countries, achieving sales of $AU596.5 million.
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