Highlights

  • Revenue rose 17.6% to A$938.8 million in FY26, while net profit after tax increased 10.7% to A$95.6 million.
  • Lovisa opened 160 stores and closed 43 underperforming locations, taking the network to 1,136 stores across more than 50 markets.
  • Comparable store sales increased 2.0%, showing that most annual growth came from network expansion.
  • Europe and the Americas recorded the fastest regional Revenue growth.
  • FY26 dividends totalled 86 cents per share, including a 33-cent final Dividend payable in October 2026.

Lovisa Holdings Ltd (ASX:LOV) is a fast-fashion jewellery retailer with a large international store network. FY26 growth remained tied mainly to new openings, particularly in Europe and the Americas. Revenue increased faster than profit, while comparable sales grew only modestly, making store productivity and rollout discipline central to the next stage of expansion.

FY26 Revenue and Profit Continue to Rise

For the year to 30 June 2026, revenue rose 17.6% to A$938.8 million. EBIT increased 14.1% to A$158.2 million and net profit after tax rose 10.7% to A$95.6 million. Gross Profit increased 18.4% to A$775.3 million and gross Margin improved by 60 basis points to 82.6%. Diluted Earnings per Share were 86.3 cents, up 10.5%. Profit grew more slowly than revenue as the larger store base carried additional operating costs.

Store Rollout Remains the Main Growth Engine

Lovisa opened 160 stores during FY26, closed 43 underperforming locations and completed 12 relocations, taking the network to 1,136 stores across more than 50 markets. Europe accounted for 76 openings, including 34 in the United Kingdom and 20 in Germany. Comparable sales rose only 2.0%, showing that most growth came from new locations rather than established stores. Site selection and store Economics therefore remain important operating variables.

Regional Performance Was Uneven

Europe revenue rose 29.5% to A$364.3 million and the Americas increased 29.6% to A$275.9 million. Australia and New Zealand declined 5.7% to A$193.4 million, while Asia fell 3.8% to A$36.7 million. Africa and the Middle East increased 12.8% to A$65.7 million. The revenue mix therefore continued to shift toward Europe and the Americas.

Cash Generation Supports Expansion and Dividends

Operating cash flow after interest and tax was A$232.8 million, while Operating Cash Flow before interest and tax was A$294.5 million. Capital Expenditure was A$58.5 million and net Debt stood at A$40.3 million against EBITDA of A$301.1 million. FY26 dividends totalled 86 cents per share, including a 33-cent final dividend payable in October 2026. The company had 53 Series 5 stores open and planned another 28 in the first half of FY27.

FY27 Trading and Key Risks

In the first eight weeks of FY27, constant-currency total sales increased 16.4% and comparable sales rose 3.0%. Management expects roughly 160 new stores in FY27, although the early trading figures are not full-year guidance. Key risks include softer consumer spending, weaker mall traffic, site constraints, tariffs on goods entering the United States and execution risk from rapid expansion. Modest comparable-sales growth also leaves the model dependent on continued openings.

Key Insights

Lovisa enters FY27 with a larger global network and momentum in Europe and the Americas, but FY26 also shows that growth is concentrated in expansion rather than established-store sales. Key questions are whether comparable sales improve, newer regions maintain their pace and new-store economics remain attractive. Cash generation and modest net debt provide support, while future earnings remain tied to rollout discipline and consumer demand.