The Lovisa (ASX: LOV) share price has dropped 3.6% on news the jewellery company will temporarily close 42 of its United Kingdom stores.
The post Lovisa (ASX:LOV) share price tumbles as pandemic grips UK appeared first on The Motley Fool Australia. –
Australian fashion jewellery company Lovisa Holdings Ltd (ASX: LOV) will temporarily close its stores in the United Kingdom, after a national lockdown was ordered by British Prime Minister Boris Johnson.
The Lovisa share price has fallen 3.6% on the news to $11.20.
In a short release to the market this morning, Lovisa said its 42 UK stores would be closed temporarily – effective immediately – with the timing for re-opening subject to further government advice.
The company says its other stores globally as well as its online business will remain open and trading.
This follows a British government announcement of a further lockdown in the UK in response to increasing COVID-19 cases.
The country has been gripped by a second wave of the COVID-19 pandemic, with a new mutant strain identified as the main cause of the latest infections.
Just a few hours ago, the UK announced an immediate shuttering of economic, social and educational activity until at least mid-February.
More about Lovisa
Lovisa is a fashion jewellery company operating mainly in Australia, where it has 152 stores; and South Africa, with 62 stores.
The company has attempted a foray into the European market only recently.
In early December, Lovisa acquired the European retail store network of German wholesaler Beeline GmbH, for just 60 Euros (yes 60 Euros, not 60 million).
That purchase is expected to add more than 80 stores to the Lovisa global store network across seven European countries.
Beeline operates 114 fashion jewellery and accessories stores across Germany, Switzerland, the Netherlands, Belgium, Austria, Luxembourg, and France, under the brands Six and I Am.
About the Lovisa share price
The Lovisa share price has lost about 6% in value over the past year. It started 2020 at close to $12, before plunging to $2.34 at the height of the pandemic in March – its 52-week low.
The company commands a market cap of $1.25 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.