Lovisa's shock departure

The chief financial officer of embattled retailer Lovisa has left suddenly.

The jewellery chain has announced an executive reshuffle, which includes the replacement of its chairman.

CFO Iain Sadler has also resigned and is set to be replaced by former Australian Pharmaceutical Industries CFO Graeme Fallet.

Michael Kay, former CEO of McMillan Shakespeare, will be the Lovisa's new chairman.

The reshuffle follows a tumultuous period for the retailer, which saw its share price tumble 40% earlier this year on the back of a profit dive.

In February, it warned gross earnings would be between $23.5 million and $25.5 million for the 2016 financial year.

It has reaffirmed its guidance, with like for like growth in the third quarter continuing at 3% versus the prior corresponding period.

Full year gross margin is forecast to be around 74%, also in line with previous guidance.