Lovisa (ASX:LOV) share price gains 7% following co-founder's Honey sale

Buy, build, sell… Blundy back at it again with this 'sweet' sale.

| More on:
jewellery share price rise represented by lots of gold necklaces hanging in a row

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Gainers

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a great start to the trading week today.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Austal, Breville, Telix, and Westgold shares are pushing higher today

These shares are starting the week positively. But why?

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »