Lovisa shares climb as year-end store count tops forecasts
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More news: Investors piled into Lovisa after the fashion retailer's global store rollout beat estimates for the 2025 financial year.
Lovisa shares were up 14.8% to $41.81 at 11:40am AEST, taking 12-month gains to 28.8%.
Jarden analysts Ed Woodgate and Christian Waked called it a mixed result, with year-end store count of 1,031 topping consensus estimates of 1,007, while higher-than-expected operating expenditure and depreciation and amortisation drove a 4% miss to average net profit forecasts.
What they said: "Mixed result means it should trade flat but may trade down as investor expectations appeared to be strong into result," Woodgate and Waked said in a note.
"A lot of positives, with a strong trading update. Key focus on the call will be the opportunity with Jewells, the impact of tariffs, and ability to reclaim gross margin."
Lovisa books 5% growth in full-year profit but trims dividend
The news: Jewellery retailer Lovisa saw its statutory net profit after tax rise 4.8% to $86.3 million in the 2025 financial year, as the company opened 162 new stores during the 12-month period.
The numbers: The company was expected to deliver full-year profit of $91.11 million, according to consensus data compiled by Visible Alpha.
Sales revenue grew 14.2% year on year to $798.1 million while earnings before interest and taxes were up 8.2% to $138.7 million. Lovisa's gross margin added 100 basis points to 82%. The company ended the financial year with 1,031 stores, compared to 900 stores a year earlier.
Full-year dividends came to 77 cents per share, down from last year's 87 cents per share and below the 79 cents expected by analysts.
The context: Lovisa said revenue growth was driven by the continued expansion of its global store network, with comparable store sales also up 1.7% on the prior year. Both store rollout and comparable store sales accelerated in the second half after a slower first half, the company said.
The group said trading for the first eight weeks of FY26 saw comparable store sales up 5.6% compared to the prior corresponding period. Total sales for the period were up 28% year on year. Since the end of the FY25 financial year, Lovisa has opened 16 new stores, with six closures or relocations, taking its total store count to 1,041.
The source: ASX
