Strong Global Retail Growth
Lovisa Reports 17.6% Revenue Increase to $938.8 Million Amid Global Store Expansion
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Key Points
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Gross profit rose 18.4% to $775.3 million in FY26, with gross margin expanding to 82.6%.
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Lovisa ended FY26 with a net cash position of $46.7 million and net debt of $40.3 million, indicating a strong balance sheet to fund growth.
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Final dividend was 33 cents per share, bringing total full-year dividends to 86 cents per share, representing a 100% payout of NPAT.
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Africa and the Middle East grew 12.8% to $65.7 million, while Australia and New Zealand declined 5.7% to $193.4 million, highlighting regional performance divergence.
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Lovisa’s FY26 report notes a seven-store trial brand in the UK, Jewells, with EBIT impacted by ongoing investment in this start-up, expanding the UK footprint.
Lovisa, the global fashion jewelry retailer, posted a strong FY26 performance with revenue climbing 17.6% to $938.8 million, powered by store expansion and international growth. The company added 160 new outlets to reach 1,136 stores worldwide, while net profit after tax rose 10.7% to $95.6 million MarketScreener. Gross margin expanded 60 basis points to 82.6%, showing the retailer is improving profitability even as it expands globally.
The Americas and Europe led growth, each climbing roughly 29.5% and 29.6% respectively Kalkiné Media. Early FY27 trading shows momentum continuing, with eight-week sales up 16.4% in constant currency and comparable store sales rising 3% MarketScreener. The company returned 86 cents per share to shareholders through dividends, representing full payout of earnings.
Store Network Expansion Drives Global Reach
Lovisa opened 160 new stores during FY26, bringing its total network to 1,136 outlets worldwide Kalkiné Media. This aggressive expansion fueled revenue growth across most regions. The Americas delivered the strongest performance with 29.6% growth, while Europe also surged 29.5% MarketScreener. Store count growth and same-store sales gains of 2.0% show both new locations and existing outlets performed well.
Margins Widen as Operating Leverage Kicks In
Gross profit jumped 18.4% to $775.3 million, outpacing revenue growth and signaling improved cost control Kalkiné Media. The gross margin expanded 60 basis points to 82.6%, meaning Lovisa kept more of each dollar as it scaled. EBITDA climbed 20.9% to $301.1 million and EBIT rose to $158.2 million, demonstrating strong operating leverage from the larger store base.
Regional Growth Diverges as Australia Stumbles
Growth was uneven across regions. Africa and the Middle East expanded 12.8% to $65.7 million Kalkiné Media. Australia and New Zealand, however, contracted 5.7% to $193.4 million, marking the only major region in decline. This pullback suggests market saturation or shifting consumer behavior in mature markets, even as emerging regions accelerate.
Balance Sheet Strengthens, New Brand Trial Underway
Lovisa ended FY26 with a net cash position of $46.7 million and generated strong operating cash flow of $294.5 million MarketScreener. The company paid a final dividend of 33 cents per share, bringing full-year payout to 86 cents and representing 100% of net profit after tax Kalkiné Media. Meanwhile, Lovisa is trialing a new brand called Jewells in the UK with seven stores, though investment in this start-up compressed profitability slightly.
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