Lovisa share prices have dropped up to 22% since announcing a decline in sales for the current financial year at its Annual General Meeting earlier this week.
Same store sales have fallen 0.9% in the fiscal year to date.
Lovisa MD Shane Fallscheer attributed the drop to competing with four years of strong sales.
“As we highlighted at the full year results announcement, we have had four years of very strong comp sales growth on the back of great execution of some major trends in the fashion accessories market.
“As a result, comp sales in the current year will be more challenging as we cycle these strong numbers, and year to date we have traded below our long term target range of 3-5%, with comps for the year to date at -0.9%.”
He assured shareholders that the year's key sales periods – spring racing and Christmas – were still to come.
For FY18, the company's gross margin increased to 80% up from 78.8% in the prior financial year.
“This margin was achieved through being able to take advantage of the trends in the fashion jewellery market, disciplined inventory management, and strong trading through the Christmas and Boxing Day period,” Fallscheer said.
A number of new appointments have also been made including former Myer COO Mark Cripsey as its new chief operating officer and two new general managers to run the European, South African and North American businesses.
The company has also continued to expand globally with 54% of its store network now outside of Australia.
Since June 30, it has opened 14 stores with plans to open more before Christmas, bringing its total to 360 stores worldwide.