There have been a number of increases to the cash rate in Australia since that time, but Australian Bureau of Statistics retail data suggests personal accessories spending is still strong.

Clothing, footwear and accessories retailing jumped by 2 per cent in September to hit $2.9 billion.

Lovisa’s share price went on a rollercoaster after the trading update, touching record highs of $25.68 but closed 7.2 per cent lower to $23.85.

The company’s shares have climbed steadily throughout 2022 and are up by more than 20 per cent this calendar year. While stock watchers are positive about the company’s long-term outlook, the numbers were not enough to change their valuation estimates, which are well below the current share price.

Investors also voiced dissatisfaction with the company’s remuneration structure on Friday, with the business receiving a second strike after 32.9 per cent of votes were cast against its remuneration report.

If more than 25 per cent of shareholders vote against a company’s remuneration report two years in a row, it triggers a second “strike” and gives investors the option of voting to spill the board.

Despite this, a motion to hold an extraordinary general meeting to spill Lovisa’s board was defeated after 87.3 per cent of votes were against this, meaning there will be no meeting to remove any of the company’s directors.

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UBS analysts note the company is trading at a 136 per cent premium to the rest of the ASX small ordinaries index, and said on Friday morning their price target for Lovisa was $20.

Analysts had been expecting a strong trading update at the company’s annual meeting, noting that the combination of new store openings and the brand’s younger consumer base would stand it in good stead.

“Relative to other listed retailers, Lovisa’s younger customer base is likely to be less sensitive to rising interest rates and its low-priced products may be more conducive to price rises to offset cost pressures,” Citi’s equities team said in a note to clients.

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