Why popular jewellery franchise Lovisa (ASX:LOV) is closing its stores in UK?

Falling prey to the COVID-19 induced pandemic is another popular lifestyle brand Lovisa Holdings Limited (ASX:LOV). The Victoria-based international specialist fast fashion jewellery retailer announced on Tuesday that it is temporarily closing down its UK stores due to a third lockdown to be implemented from Wednesday.

The retailer has total 42 stores spanning across the UK.

The shares of LOV stock dropped on ASX as the news came in. In the meantime, the stock was settled at $11.090, down by 4.562% per share with market capitalisation at 1.24 billion.

It should be noted that in the year 2020, the brand had opened up four new stores in the various parts of UK backed by the continuous growth in the region. Throughout the Europe, the retailer cited 14.7% increase in sales in 2020 as compared to FY19. The Company had churned out $42 million in 2020 only from UK stores.

While LOV’s stores in the UK will remain closed for an unknown period of time, people can still have access and shop products online.

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