Summary
- Fashion jewellery and retailer Lovisa Holdings Limited said its European stores would be temporarily closed in the UK and France.
- The two European nations have imposed further lockdowns following the increase in COVID-19 cases.
- All 24 Lovisa stores in France have been temporarily closed from 30 October 2020.
- In the UK, 40 of Lovisa’s stores will be temporarily shut down while two stores in Scotland will remain open.
- The retailer highlighted that its metropolitan Melbourne stores have now re-opened and are serving customers.
Lovisa Holdings Limited (ASX:LOV) provided an update on its European stores today, stating that after the announcement of further lockdowns to contain the coronavirus spread in the UK and France, its stores in the two geographies would be temporarily closed.
Let us look at the update in detail:
About Lovisa Holdings Limited
ASX 300-listed Lovisa Holdings Limited retails fashion jewellery and accessories for women. The Company offers its products across Australasia, parts of Southeast Asia, and parts of the Middle East.
Lovisa Holdings’ European stores subject to temporary closures
On 2 November 2020, Lovisa Holdings updated the market that its European stores will be temporarily closed after the UK and the French government announced further lockdowns as a measure to tackle the second wave of COVID-19.
- All 24 Lovisa stores in France have been temporarily closed from 30 October 2020 until these lockdown measures are lifted, and stores are permitted to re-open.
- Based on the current guidance provided by the government, these restrictions are anticipated to remain in place till at least 1 December 2020.
- The government of UK has declared its intention to enter a new lockdown phase from midnight on 5 November 2020 till at least 2 December 2020.
- Following the announcement, 40 of Lovisa’s stores in the UK will be temporarily shut down during this, with two stores in Scotland remaining open at present.
Further, relating to the predictable re-opening of its metropolitan Melbourne stores after the lifting of government restrictions, the Company highlighted that all of its metropolitan Melbourne stores have now re-opened and are serving customers.
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In its annual report for FY2020, Lovisa stated that store network closures had impacted its business in the fourth quarter due to COVID-19. However, the Company highlighted that it witnessed robust growth in digital space with a growing contribution from online sales.
The balance sheet of the Company remains strong, with a continued net cash position of more than A$20 million along with undrawn cash debt facilities to support investment in growth.
Stock Information: On 2 November 2020, the share price of Lovisa Holdings was noted at A$7.350, down by 2.000% (at AEST 01:05 PM). The market capitalisation of the Company stood at A$805.94 million.
