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Lovisa Lovisa Holdings Limited ACN 602 304 503 Level 1 , 818 Glenferrie Road Hawthorn VIC 3122 t +61 3 9831 1800 f +61 3 9804 0060 Half Year 2021 Results Announcement Strong Balance Sheet , improving sales trajectory e info@lovisa.com lovisa.com S Revenue down 9.8 % to $ 146.9m due to continuing global COVID - 19 trading disruption • Net Cash of $ 42.5m with $ 50m of debt facilities in place • • • Comparable store sales positive in Q2 , down 4.5 % for the half year 25 net new stores opened during the half year , 460 at half year end Gross Margin 77.8 % on constant currency basis with Gross Profit down 11.7 % to $ 113.4m • EBIT¹ decreased by 23.6 % to $ 30.9m Cash conversion of 131 % with operating cash flow¹ of $ 52m • Interim Dividend of 20.0 cents per share , 50 % franked Results Highlights ( A $ ' m ) Revenue Gross profit EBITDA EBIT NPAT EPS ( cents ) Interim dividend ( cps ) 1HFY21¹ ( pre AASB 16 ) 1HFY20¹ ( pre AASB 16 ) Variance 146.9 162.8 ( 9.8 % ) 113.4 128.5 ( 11.7 % ) 39.6 46.7 ( 15.2 % ) 30.9 40.4 ( 23.6 % ) 21.5 27.8 ( 22.6 % ) 20.1 26.3 -6.2 cents 20.0 15.0 +5.0 cents Managing Director Shane Fallscheer said , " We are pleased with the performance of the business for the half year , in particular with the improving sales performance we saw through Q2 despite the continued global challenges we face with the impact of COVID , and the strength of our balance sheet puts us in a great position to take advantage of future opportunities as they arise " . Results Revenue was $ 146.9m down 9.8 % on 1H20 with comparable store sales down 4.5 % for the period , with Q1 heavily impacted by temporary store closures in Victoria , Australia , as well as weakness in most global markets . With Victorian stores re - opening in Q2 and most other markets showing improved performance we saw positive comparable store sales through Q2 as mall traffic began to return , however this was again negatively impacted in the Northern Hemisphere markets as COVID cases began to increase again and temporary store closures were again put in place . Growth in the European and US markets continued during the period , with 4 new stores opened in France and 14 in the US , offset by the exit of the Spanish market in 2HFY20 . South Africa showed solid recovery through the period with 1 Financial metrics used throughout this document represent the financial performance of the company excluding the impact of the new lease accounting standard AASB 16 to ensure comparability with prior periods . A reconciliation between the previous accounting standard and the new standard is included in the Lovisa HY21 Results Presentation . 1