Shares of Lovisa Holdings (ASX:LOV) fell by as much as 10.3% to A$20.31, reaching their lowest level since August 10.

The company, a jewellery retailer, reported trading for the first seven weeks of the fiscal year 2024, which saw comparable store sales decline by 5.8%.

Lovisa has also reported a rise of approximately 20% in FY23 NPAT, while revenues increased by about 33%.

However, Citi suggested that revenues have missed the estimates by 6%, an outcome which could indicate a slower ramp-up of new stores or timing of new openings.

Additionally, the company noted that problems persist in the initial weeks of FY24, issues that it had already highlighted a month ago.

Citi has rated Lovisa as a ‘sell’ with an A$16 price target.

Towards the end of the previous trading session, Lovisa was down by 2.0% year-to-date.

Lovisa Holdings is a jewelry retailer with stores globally and its headquarters in Australia.