The company's stores are very profitable and the company earns...

The company's stores are very profitable and the company earns high margins on its affordable jewellery, it is a great business model with margins many small businesses owners could only dream of. I love the fact that they target good locations, with a small shop presence and pay minimal rent based on their small shop fronts. In FY23 LOV’s gross profit margin was 80% on revenue of $596.5 million and it made $105.7 million of earnings before interest and tax (EBIT), despite all the investment in expanding its store network.It finished the 2023 financial year with 801 stores after adding 210 stores during the period.In Australia, it had 168 stores for a population of around 26.3 million people.In the USA it only has 190 stores for 330 million people and there are many other places that have a much smaller store network than Australia such as the UK with 44 stores, Taiwan with one store, Spain with one store, the Netherlands with seven stores, Italy with seven stores, Poland with 18 stores, Canada with seven stores, Mexico with four stores.
Everyone keeps saying that the SP doesn’t have the legs to run further but the market loves this story, and SO DO I.