🦘 Grocery Specials Incoming, GYG Shares Soar After Impressive Results, Lovisa Shares Tumble Despite Profits

G’day everyone!

Here’s what we’ve got in store for you today:

• Grocery Specials Incoming

• GYG Shares Soar After Impressive Results

• Lovisa Shares Tumble Despite Profits

Let’s have a look at the market snapshot before jumping into the news:

Coles and Woolies Slash Prices on 800 Essential Groceries - Wallets Rejoice!

Coles and Woolworths are coming to the rescue by slashing prices on over 800 essential items, right as they bask in the glory of their yearly profit reveals.

Coles kicks off by trimming prices on 360+ goodies, from beef sizzle steaks to potato salads, with discounts sticking around for the next 12 weeks.

Come September, 600 items will be flashing "special" tags.

On the Woolies side of the aisle, they’re marking down over 450 products, including juicy leg hams and creamy yoghurts, until November 26.

Plus, they're rolling out a new Lower Shelf Price range that'll save you money all year long, not just seasonally.

Both supermarket giants have shown sturdy financial gains.

• Coles reports a 2.1% rise in net profit, hitting $1.1 billion, powered by ramped-up sales and smart inventory management.

• Woolworths is expected to report a net profit of $1.67 billion, thanks to a 30% surge in online grocery sales.

In short, it’s a win for your wallet and your pantry as Coles and Woolies go head-to-head to stretch your budget further. Happy shopping!

Guzman y Gomez Sizzles: Stocks Soar 60% Post-IPO

Guzman y Gomez is sizzling hot!

The Mexican-themed fast-food chain just reported better-than-expected profits in its first earnings release since going public, and the numbers are mouth-watering.

After listing on the Sydney stock exchange on June 20, the company's stock has jumped more than 60%.

For the year ended June 30, net profit hit A$5.7 million, which is 71% ahead of what they forecasted and a whopping 94% increase over last year.

The company’s global sales also saw a tasty 26% boost, hitting A$959.7 million.

Co-CEO Steven Marks credits this success to strong sales growth and better margins, making the earnings feast even more impressive.

Shares originally sold at A$22 each during the IPO and spiked by a juicy 36% on the first trading day, marking one of the best Australian IPO debuts over US$100 million since 2021.

However, not everything’s extra guac.

On a statutory basis, net losses widened to A$13.7 million from A$2.3 million the previous year.

Still, the outlook remains spicy, with healthy food options and value menu items driving a 7.4% same-store sales growth in the first seven weeks of the current financial year.

Overall, GYG's got plenty of reason to celebrate.

Shares Slide Despite Sparkly Profits: What's Up with Lovisa?

Lovisa, the global jewellery dynamo with more than 900 stores, just wowed the market with a 21% boost in net earnings, hitting a shiny $82.4 million for FY24.

Revenue climbed 17.1% to $699 million, thanks largely to an aggressive store expansion strategy.

They’ve been rolling out new locations like candy - opening 128 and closing 29, with new spots in China, Vietnam, and Ireland, plus franchises in Ecuador and Senegal.

Even with this blitz, shares took a tumble, dropping 17.5% to a low of $30.76 before clawing back a bit to close at $32.83.

So, what’s causing the dip?

Well, comparable store sales slid 2%, though they’re inching back up.

Also, the growth in the first eight weeks of FY25 is a slightly slower 12.7%, compared to last year's figures. Not ideal when investors were expecting fireworks.

CEO Victor Herrero touted robust sales and profit growth while prepping for his baton handover to Smiggle's John Cheston next year.

Meanwhile, Lovisa is hammering out an e-commerce game plan, splashing out on new systems and tapping into sites like Zalando and ASOS, plus key Chinese marketplaces.

Despite hiccups, they’re showing commitment with a chunky final dividend of 37 cents per share.

Mixed signals? Definitely.

But for now, Lovisa seems geared up for another lap around the profit track.

Recommended Reads (one-click sign up)

Here are some newsletters that you might also be interested in reading:

Strategy Breakdowns: A 3-minute email on the strategy playbooks and growth hacks that built the world's greatest companies.

Step By Step: Get actionable business & personal advice from someone who has actually done it.

AI Mastery Newsletter: Master AI at work from a Google AI Leader.

Nautilus: Fascinating science stories from the leading experts and writers in their fields.

The Crypto Nutshell: Crypto News & Expert Predictions all in a nutshell.

Note: some of these links may be sponsored. Don’t worry, we only recommend newsletters that we love to read ourselves!

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!