Buy, build, sell… Blundy back at it again with this ‘sweet’ sale.
The post Lovisa (ASX:LOV) share price gains 7% following co-founder’s Honey sale appeared first on The Motley Fool Australia. –
The Lovisa Holdings Ltd (ASX: LOV) share price finished the day 7% higher. You would think such a move would come with an announcement. Though the jewellery retailer itself had no news, the company’s co-founder Brett Blundy certainly did.
Lovisa shares have made for a great investment over the past year. After today’s gain, the Lovisa share price has appreciated 160% since a year ago.
Another one bites the dust
Brett Blundy, Lovisa co-founder and chairman of the board, has revealed yet another business sale. The jewellery retailer’s share price climbed today and so did Brett Blundy’s wealth following the sale of his investment firm’s ownership in Honey Birdette to Playboy owner PLBY Group Inc (NASDAQ: PLBY) for $US333 million ($A443 million) in cash and stock.
Honey Birdette is a luxury lingerie and lifestyle brand founded in Australia back in 2006. Blundy’s investment company, BBRC International held a 62% stake in the company founded by Janelle Barboza and Elouise Monaghan. Over the years the ‘racy’ retailer has expanded, now operating across Australia, the United States, and the United Kingdom with 60 stores.
Exploring the financials, the company expects to achieve $73 million in revenue and roughly $28 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) for FY21. Impressively, this would represent an increase of more than 40% and 95% respectively.
The sale of Honey Birdette is not Blundy’s first lingerie exit. Back in 2018, the Lovisa co-founder cashed out of Bras N Things for $500 million — that one went to Hanesbrands Inc. (NYSE: HBI).
And the Lovisa share price?
It’s hard to say what dots investors might be connecting on this one. Perhaps the sale instils confidence in Lovisa shareholders for Blundy’s leadership. Or maybe the market is speculating over the retailer’s future buyout potential.
The billionaire has certainly backed plenty of winners in the retail space. For instance, Adairs Ltd (ASX: ADH), Accent Group Ltd (ASX: AX1), and Universal Store Holdings Ltd (ASX: UNI) in the past year have gained 79%, 94%, and 66% respectively… and Mr Blundy is invested in all three.
Beyond that, the serial entrepreneur owns 40.2% of the Lovisa shares on offer and is by far the largest shareholder.
Should you invest $1,000 in Lovisa right now?
Before you consider Lovisa, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lovisa wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.