Lovisa Reports $798 Million Revenue and 162 New Stores in FY25
Lovisa Holdings has reported a robust FY25 with revenue climbing 14.2% and over 160 new stores opened worldwide, signaling strong momentum in the fashion jewellery sector.
- Revenue increased 14.2% to $798.1 million
- Gross margin improved by 100 basis points to 82.0%
- Opened 162 new stores globally, reaching 1,031 locations
- Net profit after tax rose 4.8% to $86.3 million
- Strong start to FY26 with 5.6% comparable store sales growth
Solid Financial Performance
Lovisa Holdings Limited has delivered another year of solid growth, reporting a 14.2% increase in revenue to $798.1 million for FY25. The company’s earnings before interest and tax (EBIT) rose 8.2% to $138.7 million, while net profit after tax (NPAT) grew by 4.8% to $86.3 million. These results reflect both the expansion of Lovisa’s global store footprint and steady improvements in comparable store sales, which increased by 1.7% over the year.
Margin Expansion and Operational Investments
Lovisa’s gross margin reached a notable 82.0%, up 100 basis points from the previous year, continuing a multi-year trend of margin improvement. This was achieved through disciplined pricing and promotion strategies. The company also invested in strengthening its team structures and technology platforms to support its growing international operations. While these investments increased operating costs, they were partially offset by a significant reduction in CEO long-term incentive expenses.
Aggressive Store Rollout Drives Growth
A key growth driver was the addition of 162 new stores, bringing Lovisa’s global network to 1,031 stores across more than 50 markets. Europe led the expansion with 86 new openings, including significant growth in the UK, Germany, and France. North America also saw momentum, particularly in Canada and the USA. The company remains focused on store profitability, closing 21 underperforming locations and relocating 10 others to optimize returns.
Strong Cash Flow and Dividend Policy
Lovisa generated robust operating cash flow of $243.3 million, underpinning its capacity for continued expansion. The board declared a final unfranked dividend of 27.0 cents per share, bringing the full-year dividend to 77.0 cents, representing 100% of earnings. The dividend policy remains flexible, with future payouts to be balanced against growth investments and cash flow needs.
Positive Outlook into FY26
Early trading in FY26 has been encouraging, with comparable store sales up 5.6% and total sales rising 28.0% in the first eight weeks. Lovisa has already opened 16 new stores since the fiscal year end, maintaining its aggressive rollout pace. With a strong balance sheet and ongoing investments in both physical and digital channels, the company is well positioned to sustain its growth trajectory in the competitive fashion jewellery market.
Bottom Line?
Lovisa’s strong FY25 results and confident start to FY26 set the stage for continued global expansion, but investors will watch closely how the company balances growth with profitability.
Questions in the middle?
- How will Lovisa manage rising operational costs amid aggressive store expansion?
- What impact will digital marketing investments have on future sales growth?
- Could dividend policy shift if growth opportunities require heavier capital allocation?
