Highlights

• Chief Financial Officer Chris Lauder resigned, with his last day set for 7 April 2027 and a global search under way.

• FY26 Revenue rose 17.6 per cent to A$938.8 million, and net profit after tax rose 10.7 per cent to A$95.6 million.

• Lovisa opened 160 stores and closed 43 in FY26, finishing the year with 1,136 stores across more than 50 markets.

• Total sales for the first eight weeks of FY27 were up 16.4 per cent in constant currency, according to the company.

What should investors make of Lovisa Holdings (ASX:LOV) now that its long-serving finance chief is leaving just weeks after a year of double-digit profit growth? In short, the operating story set out in the August result has not changed: the fashion jewellery retailer is still opening stores at pace in Europe and North America. What has changed is the Leadership line-up around Global CEO John Cheston, and that is something the market will watch closely as the group heads into its annual meeting season.

On 8 October 2026, Lovisa told the ASX that Group Chief Financial Officer Chris Lauder had resigned. He is serving a six-month notice period, with his last day set for 7 April 2027, and the board said it would appoint a successor after a global search. "We would like to thank Chris for his significant contribution to the group over the last nine years," Mr Cheston said in the announcement.

The company did not link the resignation to trading conditions, and no reason for the departure was given.

A second change at board level

About a week later, Lovisa announced that Deputy Chairman Mark McInnes would move from an executive to a non-executive role, effective 26 October 2026. He remains deputy chairman and a non-independent director.

BB Retail Capital is the Investment firm of chairman and founder Brett Blundy, which owns roughly 39 per cent of Lovisa. Mr McInnes became executive deputy chairman in June 2025, the same day Mr Cheston took over as Global CEO.

Taken together, the two announcements mean a new CFO will need to be found while the group is stepping up its international rollout.

What Lovisa does and where revenue comes from

Lovisa sells affordable fashion jewellery and accessories, including earrings, necklaces and piercing services, through a fast-turnover model that refreshes product weekly. It trades mainly through company-owned stores in shopping centres and high streets, with Franchise partners in some markets in the Middle East, Africa and South America.

Growth has come chiefly from new stores rather than higher sales in existing ones. In the 52 weeks to 28 June 2026, revenue from Europe rose 29.5 per cent to A$364.3 million and the Americas rose 29.6 per cent to A$275.9 million. Together these regions now generate more than two-thirds of group revenue.

By contrast, the home market is shrinking as a share of the business. Australia and New Zealand revenue fell 5.7 per cent to A$193.4 million, and Asia declined 3.8 per cent to A$36.7 million.

FY26 results in figures

For FY26, Lovisa reported revenue of A$938.8 million, up 17.6 per cent. Gross Margin improved by 60 basis points to 82.6 per cent, and EBIT rose 14.1 per cent to A$158.2 million.

Net profit after tax increased 10.7 per cent to A$95.6 million, or 86.3 cents a share. Operating Cash Flow grew 21 per cent to A$294.5 million. The board declared full-year dividends of 86 cents a share, equal to 100 per cent of NPAT, including a 33-cent final Dividend franked at 50 per cent.

Global comparable store sales rose 2.0 per cent for the year, a modest figure that underlines how much of the growth came from the expanding footprint.

The UK added 30 stores, the US 21, Canada 20 and Germany 16. New franchise markets included Réunion, Mauritius, Ghana, Kenya, Burkina Faso and Iraq.

Early FY27 trading and initiatives

In the results presentation, Lovisa said total sales for the first eight weeks of FY27 were up 16.4 per cent in constant currency, with comparable store sales up 3.0 per cent and momentum improving in August.

Management pointed to a "long runway of new store growth" in Europe, the US and Canada, funded from operations. It is also rolling out a new Series 5 store format, with 53 opened at the time of the result and 28 more scheduled for the first half of FY27, and is trialling its Jewells concept in seven UK stores.

Balance sheet

Lovisa ended FY26 with net Debt of A$40.3 million and committed debt facilities of A$120 million, which were extended for three years. The full payout policy leaves less retained cash, but operating cash flow has so far covered both store investment and dividends.

Risks and what to watch

Several risks deserve attention. Comparable sales growth has been low single digits, so the Earnings trajectory depends heavily on new stores performing in unfamiliar markets. Australia and Asia are contracting, and Lease liabilities of roughly A$419 million represent a significant fixed commitment.

Leadership transition is another uncertainty. Losing a CFO with nine years of institutional knowledge during a rapid international rollout raises execution questions, and the outcome of the global search is not yet known. The founder-linked shareholding also concentrates influence over board decisions.

Investors will look to the 2026 annual general meeting, which in previous years has included a trading update, for fresh comparable sales figures and any comment on the CFO succession. The pace of US and European openings, the Series 5 rollout and first-half results in February 2027 are the next key reference points.