Key Highlights

  • Lovisa ended FY2025 with 1,031 stores and reported sales revenue of $798.1 million (up 14.2%) and net profit after tax of $86.3 million (up 4.8%).
  • H1 FY2026 revenue rose 23.3% to $500.7 million, but statutory net profit rose only 2.6% to $58.4 million, held back by a start-up loss from the new "Jewells" premium brand.
  • Growth has shifted decisively offshore: Europe revenue grew ~39% and the Americas ~38% in the December 2025 half, while Australia and New Zealand revenue fell ~5%.
  • John Cheston became CEO in mid-2025, succeeding Victor Herrero; founder Brett Blundy remains chairman.
  • Shares traded well below their 52-week high of ~$43.68 in mid-2026, with a trailing dividend yield near 3.3% at the late-June 2026 price.

Lovisa Holdings (ASX: LOV) has built one of the ASX's most watched retail growth stories on a simple idea: roll out small, high-margin fast-fashion jewellery stores in market after market around the world. In FY2025 the network pushed past 1,000 stores and H1 FY2026 revenue jumped more than 20%, yet the share price has fallen sharply from its highs and a new chief executive has taken the wheel. The question for investors is whether rapid global expansion can keep translating into per-share value.

Recent Performance

FY2025 showed the rollout machine still running. Sales revenue rose 14.2% to $798.1 million, EBIT increased 8.2% to $138.7 million, and net profit after tax grew 4.8% to $86.3 million, with gross margin near 82%. Lovisa finished the year with 1,031 stores, having opened 162 new stores. Comparable store sales grew just 1.7%, underlining that the bulk of growth comes from new openings rather than existing ones selling more.

In H1 FY2026 (to late December 2025), revenue rose 23.3% to $500.7 million with gross margin at 82.9%. Statutory net profit rose only 2.6% to $58.4 million — but excluding the Jewells start-up loss, underlying net profit rose 21.5% to $69.6 million, demonstrating strong core performance. The market's reaction was unforgiving: shares fell sharply on the day, reflecting how sensitive a premium-rated growth stock is to any headline miss.

The Business and Where Growth Is Coming From

Lovisa sells affordable, trend-led costume jewellery and accessories from compact stores — often mall kiosks — across more than 50 markets. High gross margins (~82%) from low-cost product at accessible price points, combined with small store footprints keeping rent and fit-out costs low, create the payback economics behind each new opening. The regional revenue mix has shifted dramatically: Australia and New Zealand now represent only ~25% of sales (versus ~50% in FY2020), with Europe the single largest region and the Americas a fast-growing contributor. In H1 FY2026, Europe grew ~39% and Americas ~38%, while Australia and New Zealand fell ~5% — the home market is now the laggard.

The "Jewells" venture — a more premium jewellery concept launched in the UK — is an attempt to extend the playbook into a higher price tier. It produced a start-up loss in H1 FY2026, weighing on statutory profit, and some analysts read it as a signal the core format may be maturing. Leadership also changed in mid-2025, when John Cheston (formerly long-time boss of Smiggle) became CEO, with Brett Blundy remaining as chairman and Mark McInnes joining as executive deputy chairman.

Dividends and Shareholder Returns

For FY2025, Lovisa declared full-year dividends of 77 cents per share, down from 87 cents the prior year. For H1 FY2026, it declared an interim dividend of 53.0 cents per share, 50% franked, payable late March 2026. Australian investors should note the partial franking, which reduces the after-tax value compared with a fully franked payout. On the trailing 12-month dividend of 77 cents and the late-June 2026 share price, the yield sat near 3.3% — a figure that moves daily with the share price. Payout ratios have been high relative to earnings, meaning dividend cover is thin and future dividends are not guaranteed.

What Investors May Watch Next

Comparable store sales improvement is the most important medium-term watchpoint: with like-for-like growth running at low single digits, any sustained lift would materially strengthen the investment case. Progress on the Jewells venture — whether it reaches profitability or remains a drag — will also shape sentiment. International market maturity curves in Europe and the Americas, the pace of new store openings, and evidence that John Cheston is adding operational discipline to the rollout are further signals to monitor.

Risks

Opening 100-plus stores a year across dozens of countries is operationally demanding — poorly chosen sites, weak new markets or rising occupancy costs erode store economics. Heavy reliance on new stores means headline growth could decelerate quickly if the pace slows. The Jewells start-up loss introduces ongoing uncertainty. Currency and offshore-market exposure grows as non-Australian revenue increases. Lovisa's premium earnings multiple leaves shares vulnerable to sharp falls on any disappointment, as the H1 FY2026 market reaction demonstrated.

This article is general information only and does not constitute personal financial advice. Investors should conduct their own research and consider their objectives, financial situation and needs.