During a volatile 2022, the Lovisa Holdings Ltd (ASX: LOV) share price has seen its fair share of wild swings.
Just yesterday, the fashion jewellery retailer’s shares plummeted by almost 10% on the back of weak investor sentiment. This has likely been caused by the recent downturn across the entire ASX market. In particular, the S&P/ASX 300 Retailing index (AXRTKD) fell another 1.11% on Monday.
Today, the company’s shares are again in the red. However, this is likely due to trading ex-dividend today.
At the time of writing, Lovisa shares are down 5.03% to $16.81.
Let’s take a closer look at what this means for the company’s shareholders.
Shareholders set eyes on Lovisa’s interim dividend
With investors having locked in the company’s latest dividend, the Lovisa share price is tumbling.
Typically, when a company reaches this day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.
In the half-year report, Lovisa reported double-digit growth across key metrics and increased its interim dividend by 85%.
Management noted this was due to the strong cash outcome and balance sheet position for the first half.
Lovisa ended the calendar year with $52.7 million of net cash and no debt.
Overall, net profit after tax (NPAT) rose to $36.7 million, a lift of 70.3% compared to $21.5 million in the prior year.
When can shareholders expect to be paid?
For those eligible for Lovisa’s interim dividend, shareholders will receive a payment of 37 cents per share on 24 April. The dividend is 30% franked, which means investors can expect to receive some tax credits from this.
And, in case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.
Lovisa share price summary
Since the beginning of 2022, Lovisa shares have lost 15%. The ASX 300 Retailing Index has also fallen by around 17% from its former highs on 4 January.
Lovisa shares reached an all-time high of $23.07 in November, before backtracking.
Based on today’s price, Lovisa commands a market capitalisation of roughly $1.9 billion.
The post Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today appeared first on The Motley Fool Australia.
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More reading
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- Broker says Lovisa (ASX:LOV) could become a ‘global force’
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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