In December, the Fund participated in the IPO of Lovisa (LOV), an Australian based specialist fast fashion jewellery retailer with 220 stores across...

OC Funds Management

In December, the Fund participated in the IPO of Lovisa (LOV), an Australian based specialist fast fashion jewellery retailer with 220 stores across Australasia, South East Asia, South Africa and the Middle East. LOV has a vertically integrated business model that delivers quality, affordable and on-trend products from concept to shop floor in approximately 8-10 weeks. Product innovation is the key to LOV's competitive advantage. LOV's vertically integrated model has underpinned gross margins in excess of 75% and helped to ensure that it is profitable in each of the eight countries in which it operates. The store network in Australia is relatively mature (although like for like store sales growth is above 10% in FY15 to date) with approximately 157 stores. The strong cash flow generated in the Australian market is expected to fund the continued roll-out of offshore stores. The stock closed the quarter at $2.34, a 17% premium to its IPO price. We remain bullish on the company's long term growth prospects which ought to see it deliver double digit EPS growth over the medium term.


1 topic

OC Funds Management
OC Funds Management

OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment