Highlights

  • Lovisa reported FY26 Revenue of AUD 938.8 million, up 17.6% from FY25.
  • EBIT increased 14.1% to AUD 158.2 million, while NPAT rose 10.7% to AUD 95.6 million.
  • The global network reached 1,136 stores after 160 new stores were opened during FY26.
  • Early FY27 trading showed constant-currency total sales growth of 16.4% and comparable store sales growth of 3.0%.

Lovisa Holdings Limited (ASX:LOV) continues to expand its position as a global specialist fashion jewellery retailer, combining rapid product turnover with a vertically integrated model and an expanding international store network.

Established in 2010, Lovisa designs, develops, sources and merchandises its own branded products. The model is built around identifying fashion trends quickly and delivering affordable jewellery and accessories across physical stores and digital channels. The company now operates more than 1,000 stores across over 50 markets, making international execution increasingly important to its Earnings profile.

Lovisa’s 26 August 2026 full-year results provided the most recent substantive company update. The numbers highlighted another year of store expansion, higher sales and improved gross margins, alongside continued Investment in technology, Supply chain and global retail infrastructure.

FY26 Performance

For FY26, Lovisa generated total revenue of AUD 938.8 million, an increase of 17.6% from AUD 798.1 million in FY25. Comparable store sales increased 2.0%, indicating that growth came from both existing locations and continued expansion of the store network.

Gross profit increased 18.4% to AUD 775.3 million, while gross Margin improved by 60 basis points to 82.6%. Management attributed the improvement to its sourcing approach and promotional efficiency. The FY26 gross margin was also 270 basis points above the FY23 level, reflecting several years of margin expansion.

EBIT increased 14.1% to AUD 158.2 million, while net profit before tax reached AUD 134.1 million, up 13.5%. NPAT rose 10.7% to AUD 95.6 million. EBITDA increased 20.9% to AUD 301.1 million.

Operating cash flow was AUD 294.5 million, increasing 21.0%. The company said its store-opening and refurbishment investment continued to be funded through existing cash flows, an important consideration given the pace of international rollout.

Global Rollout

Store expansion remains a central part of Lovisa’s growth model.

The company opened 160 new stores during FY26, taking the global network to 1,136 stores at year-end. Europe accounted for the largest portion of new store growth, with 76 openings during the year, including 34 in the United Kingdom and 20 in Germany.

The Americas also remained an important growth market. Lovisa opened 44 stores across the region during FY26, supported by continued expansion in the United States and Canada. Revenue growth was particularly notable across these international regions, with the Americas up 29.6% and Europe up 29.5%.

Lovisa is not expanding simply to maximise store numbers. During FY26, it closed 43 underperforming stores and relocated another 12. Management said it remains focused on store profitability and will act where individual locations Fail to deliver the required return on investment.

This approach is important because rapid retail expansion can create risks if weaker sites remain open solely to maintain network growth.

Retail Economics

Lovisa’s vertically integrated model gives the company considerable control over product development, sourcing, merchandising and Brand positioning.

Fashion jewellery depends heavily on frequent product refreshes and the ability to respond quickly to changing consumer preferences. Lovisa’s model is designed around identifying trends and bringing new products to stores rapidly.

High gross margins provide an important foundation, but store profitability also depends on rent, labour, freight and other operating expenses. As the network expands, Depreciation and lease-related interest costs also increase.

FY26 EBIT growth therefore lagged EBITDA and revenue growth, partly reflecting higher depreciation associated with additional store fit-outs and right-of-use assets, together with increased interest expense linked to Lease liabilities.

The company is continuing to invest in technology, supply chain and retail support structures as its geographic footprint becomes larger. These investments are intended to provide the infrastructure required to operate effectively across more than 50 markets.

Jewells Trial

Alongside the core Lovisa business, the company is testing a potential second global brand called Jewells.

At the FY26 result, Jewells remained in its start-up phase and operated seven stores in the United Kingdom. Its development affected reported EBIT during the year, illustrating the near-term cost associated with testing a new retail concept.

For investors, the initiative provides an additional area to monitor. A successful second brand could potentially broaden Lovisa’s longer-term growth opportunity, but retail concepts generally need to demonstrate attractive store Economics before wider expansion becomes justified.

The core Lovisa network consequently remains the main driver of the investment case.

FY27 Focus

The company entered FY27 with positive early trading momentum.

For the first eight weeks of FY27, total sales increased 16.4% on a constant-currency basis compared with the corresponding period of FY26. Comparable store sales increased 3.0%, with management noting improving momentum during August.

Lovisa continues to assess opportunities to expand both its physical and digital networks across existing and new markets. Management believes the company has a long runway for further store development, supported by additional global operating structures.

Investors will likely monitor comparable sales, new-store productivity, gross margin, international profitability and Capital efficiency. Currency movements are also relevant because an increasing share of earnings comes from overseas markets.

Final Takeaway

Lovisa Holdings’ FY26 result reinforced the company’s global growth strategy, with revenue rising 17.6% to AUD 938.8 million and the store network expanding to 1,136 locations.

Higher gross margins, EBIT growth and operating cash generation provided support for further investment, while the Americas and Europe remained important expansion markets.

For Lovisa Holdings (ASX:LOV), FY27 will place continued emphasis on profitable store rollout rather than network growth alone. Comparable sales, store economics, margin management and disciplined international expansion will remain central to assessing how effectively the company converts its global footprint into sustainable earnings growth.