Everyday investors are spoiled for choice on the ASX when it comes to high-growth retailers, but Lovisa Holdings Ltd and Temple & Webster Group Ltd stand out. If you're hunting a growth stock, you might find yourself weighing Lovisa's sparkly global expansion against Temple & Webster's home décor disruption.
Lovisa is a fast-growing fashion jewellery retailer, founded in Sydney in 2010 and now boasting over 1,136 stores across more than 50 countries. Its vertically integrated model lets Lovisa design, source, and sell its own branded jewellery affordably through brick-and-mortar stores and seven online sites, capturing trend-focused consumers around the world.
Lovisa sits at a market cap of $2.51 billion and generated earnings per share of $0.792. The company's P/E ratio of 26.50 feels moderate for a growth-oriented retailer, and it now offers a franked dividend yield of 3.5%.
Temple & Webster is an online-only retailer, best known for its large range of over 200,000 furniture and homewares products.
Temple & Webster's fundamentals, however, highlight its much smaller size: a market cap of $510.47 million. Its EPS is $0.064 and although it's profitable, its P/E ratio is a sky-high 128.82.
Lovisa is down 20.16% year-to-date while Temple & Webster has fell 67.32%.
Lovisa has also seen volatility in the past month but the daily moves have generally been in the -4% to +13% range, whereas Temple & Webster has seen several large one-day falls and occasional bounces.
Unless Temple & Webster's next era of growth comes through the numbers stack up for Lovisa.