Key Highlights

  • First-half FY26 revenue increased 23.3% to AUD 500.7 million.
  • Underlying NPAT excluding Jewells rose 21.5% to AUD 69.6 million.
  • The global network reached 1,095 stores by the end of the December half.
  • Comparable-store sales increased 2.2%, showing that most growth came from new locations.

Lovisa Holdings Limited (ASX:LOV) continues to expand its global jewellery network at a rapid pace. First-half revenue and underlying earnings increased, but modest comparable-store growth and losses from the new Jewells format have shifted attention towards the quality and cost of expansion.

A Fast-Fashion Jewellery Model

Lovisa designs and sells affordable costume jewellery through a vertically integrated model. Direct sourcing and rapid product refresh support high margins, with first-half underlying gross margin reaching 82.9%.

Store Expansion Drives Revenue

The network reached 1,095 stores by the end of the December 2025 half after passing 1,000 stores during 2025. Expansion has increasingly focused on the Americas and Europe.

First-half FY26 revenue rose 23.3% to AUD 500.7 million. Statutory NPAT increased 2.6% to AUD 58.4 million.

Jewells Creates an Earnings Drag

The premium Jewells format recorded an EBIT loss of about AUD 10.8 million and an after-tax loss near AUD 11.2 million during its investment phase.

Excluding Jewells, underlying NPAT increased 21.5% to AUD 69.6 million and underlying EBIT rose 20.4% to AUD 109.1 million.

Comparable Sales Remain Modest

Comparable-store sales increased 2.2% in the first half. During the first seven weeks of the second half, total sales rose 21.5% while comparable sales increased 1.6%, indicating that new stores continued to drive most growth.

Cash Flow Supports Expansion

Operating cash flow increased 30.3% to AUD 183.8 million. Lovisa declared a 53-cent interim dividend, franked at 50%.

What May Be Watched Next

Comparable sales, new-store returns, Jewells losses, margins and operating cash flow will indicate whether expansion is deepening the core business.

Key Risks

Weak comparable growth may signal maturation or cannibalisation. Jewells remains loss-making, while fashion errors, rent and wage inflation, and softer discretionary spending can affect returns.

How many stores did Lovisa operate?

The network reached 1,095 stores by the end of the December half.

What was first-half FY26 revenue?

Revenue reached AUD 500.7 million.

How did underlying NPAT perform?

Excluding Jewells, underlying NPAT rose 21.5% to AUD 69.6 million.

What were comparable-store sales?

Comparable-store sales increased 2.2% in the first half.