Lovisa chairman Brett Blundy has backed the company’s emerging UK-based Jewells brand to become a major earner, as sales in the overarching company's home market went backwards.
In Lovisa’s annual report today, Blundy threw his support behind Jewells, which currently trades from seven stores and has weighed on group earnings. Jewells' store count has also remained unchanged from FY25, with Lovisa's FY25 annual report noting seven stores were open by June 30, 2025.
Blundy told shareholders Jewells was progressing reasonably and the business was approaching it with the same methodical care that built Lovisa.
“It is too early to call it a success, but early enough that I wanted you to hear about it directly from me, and to know we consider it an important part of our next chapter and expect it to be a big contributor,” Blundy said.
Jewells reported an EBIT loss of $10.8 million in the first half of FY26. Lovisa did not break out a full-year figure, and its annual report describes the business as an ongoing seven-store trial.
Analysts have been more cautious. UBS analysts told investors in August that Jewells’ losses should narrow but remain significant, citing early execution issues and a challenged UK consumer. The broker has said the brand will either become a successful new format or Lovisa will cut its losses, with closure possible.
The UK market has weighed heavy on other Australian brands, with Peter Alexander recently axing its rollout plans in the region and closing all three of its stores.
The push of Jewells in the UK also comes as Lovisa’s Australian business went backwards. Australia and New Zealand revenue fell 5.7 per cent to $193.4 million, from $205 million a year earlier.
Australian revenue alone dropped 5.5 per cent to $170.3 million, from $180.2 million, even as the local network grew from 182 to 185 stores. Australia now accounts for about 18 per cent of group revenue, down from almost 23 per cent the year before.
Asia also slipped. Revenue fell 3.8 per cent to $36.7 million as Lovisa cut its Singapore network from 16 to 12 stores and Malaysia from 42 to 38.
Lovisa’s growth came from further offshore. Europe revenue jumped 29.5 per cent to $364.3 million and the Americas rose 29.6 per cent to $275.9 million. Group revenue lifted 17.6 per cent to $938.8 million.
Group comparable store sales grew 2 per cent for the year, which Blundy acknowledged fell short.
“The honest counterpart is that global comparable store sales grew only 2.0% for the year — short of where we have told you, and ourselves, we need to be,” Blundy shared in the report.
UBS has pointed to rising competition from Harli + Harpa as a drag on sales per store in Australia and New Zealand. The low-price jeweller was founded by former Lovisa CEO and co-founder Shane Fallscheer.
Lovisa closed 43 stores globally during the year and opened 160, taking its network to 1,136 stores. It has also rolled out its new Series 5 store concept to 53 stores, with a further 28 scheduled for the first half of FY27.