The Lovisa Holdings Ltd (ASX: LOV) share price has soared 15% in response to the FY25 result and trading update.
Lovisa is a global retailer of affordable jewellery. It also has a small, new premium jewellery brand Jewells in the UK.
Lovisa FY25 result
Here are some of the highlights from the FY25 report:
- Revenue grew 14.2% to $798.1 million
- Gross profit increased 15.7% to $654.7 million
- EBIT (EBIT explained) rose 8.2% to $138.7 million
- Net profit after tax (NPAT) growth of 4.8% to $86.3 million
- Final dividend down 27% to $0.27 per share
During the year, the business opened 162 new stores during the year, ending the period with 1,031 stores. It added a net four stores in Australia, 24 Lovisa stores and seven Jewells stores in the UK, 11 stores in Germany, eight in the Netherlands, 22 in the USA and 18 Canada.
Lovisa said it continues to focus on the quality of its store network resulted the business closing 21 stores being closed during the period and 10 relocations. It’s focusing on store profitability and where landlords don’t provide “profitable rent”.
The business noted it has continued to focus on pricing and promotion management, helping drive the gross profit margin expansion.
Outlook for the Lovisa share price
Trading for the first eight weeks of FY26 saw comparable store sales rise by 5.6%. Total sales increased by 28% year on year. That’s an excellent start to the year, in my view.
Since the end of FY25, it has opened 16 new stores and closed/relocated six stores. The company now has a total store count of 1,041. It’s continuing to focus on opportunities for expanding its physical (and digital) store network. The business expects the store rollout momentum to continue. That bodes well for future growth, in my view.
I’m curious to see how its Jewells efforts perform in the UK, there is plenty of competition in that space. The strong start to sales in FY26 is a great sign that profit growth could be strong in FY26 and hopefully beyond.
While the dividend reduction was disappointing, it represented 100% of this year’s earnings. I think it can continue to pay appealing dividends for shareholders as it grows.
It’s one of the ASX growth shares to watch, though it’s now much higher valued, so I’m not looking to buy today.
