• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Lovisa Share Price Starts to Shine Again (ASX:LOV)

Like 0

By Carl Wittkopp, Friday, 13 November 2020

At the time of writing, the share price of Lovisa Holdings Ltd [ASX:LOV] is trading at $11.57, up 15.35%. News of a European acquisition saw the Lovisa share price jump up into positive territory...

At the time of writing, the share price of Lovisa Holdings Ltd [ASX:LOV] is trading at $11.57, up 15.35%. News of a European acquisition saw the Lovisa share price jump up into positive territory.

As you can see, the LOV shares are starting to punch higher over the last couple months:

ASX LOV Share Price Chart 1

Source: Optuma

LOV share price reacts to acquisition

The jewellery retailer saw its share price fall from the high in October 2019.

The fall turned into a steep descent when COVID-19 showed up.

In turn, savaging the share price by 83.42%, as seen in the chart below.

Lovis Share Price Chart - ASX:LOV

Source: Optuma

Lovisa then moved into survival mode.

Now operating 434 stores globally, the company experienced disruption to normal trading conditions due to the virus.

This caused a significant reduction in sales for Q4.

The company reported ‘Sales Revenue (excluding Franchise Revenue) for the full year ended 28 June 2020 of $237 million, compared to $249m in FY19.’

However, with stores globally locked down, their online business exploded to deliver 256% growth on the prior year during Q4, with trading websites now operational across most markets that Lovisa trades in.

The company announced recently the acquisition of a European retail store network.

Based in Germany, wholesaler ‘beeline GmbH’ is expected to add more than 80 stores to the Lovisa brand across six European countries.

Is the Lovisa share price reflecting recovery hopes?

Looking at the chart the LOV share price is on a strong run up since the March low.

With the news of the European acquisition driving the price higher today.

ASX LOV Share Price Chart 3

Source: Optuma

If this continues it may bring the levels of $11.97 and $12.78 into play. If there is a retracement, the share price may fall to $10.40 or $8.80.

With lockdown ending people want to get back to normal life, this could play into Lovisa’s favour and push sales.

Christmas is coming up fast, which may further boost profits and the share price for Lovisa.

In many ways the Lovisa share price may reflect recovery hopes, as retail in Australia gets back to normal.

Regards,

Carl Wittkopp,
For Money Morning

PS: A few years ago, Lovisa was a small-cap, before it hit the $1 billion market cap mark. Check out these four small-cap companies that could thrive in the post-lockdown world.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Carl Wittkopp

Carl’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • Ride Mining’s Profitable ‘Curve’ this Way
    By Callum Newman

    All week we’ve been on a mission. We’re unpicking the dynamics around gold, and gold stocks. Here’s a bit of advice on this opportunity,

  • Silver & Platinum Squeeze Higher
    By James Cooper

    Cycle Turns: Silver and Platinum on the move… Is it their industrial or precious metal angle that’s getting investors interested?

  • One forecast for gold: 10k per ounce!
    By Callum Newman

    Gold was long considered a “chaos” hedge, and protection against market sell offs and financial crisis. It can be that, for sure. But for now, the markets are bidding on both, because it’s inherently protection against currency depreciation. This is why bitcoin is surging toward new highs as well.

Primary Sidebar

Latest Articles

  • Ride Mining’s Profitable ‘Curve’ this Way
  • Silver & Platinum Squeeze Higher
  • One forecast for gold: 10k per ounce!
  • Three men, $20.8 million, and a $230 million rally… all in a day
  • Jamie Dimon’s warning means one thing only

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988