Australian low-price jeweller Lovisa has reported a 23.3 per cent lift in total sales to just over $500 million.
This has, in turn, led to growths across all core metrics, each above 20 per cent. Underlying gross profit surged 23.4 per cent to $412.9 million, while underlying earnings before interest and tax (EBIT) rose 20.4 per cent to $109.1 million.
In reported terms, the group’s EBIT grew 8.9 per cent to $98.3 million, impacted by the start-up phase of Lovisa’s “potential” second global brand Jewells, which contributed a $10.8 million EBIT loss.
Despite the hiccup with Jewells, the group’s CEO John Cheston welcomed the overall result, including a 50 basis point lift in underlying gross margin to 82.9 per cent, which follows a 170 basis point lift in the first half of FY25, and 220 basis points higher than the same period in FY24.
“Lovisa has once again been able to deliver strong growth in the underlying global Lovisa business, with the highlight of another exceptional gross margin performance and the continued momentum in the store rollout through the period,” Cheston said.
“I would like to share my appreciation to the global team for their hard work in delivering these outstanding results.”
As the new year rolled in, trading for the first seven weeks of the second half of FY26 across Lovisa saw total sales rise 21.5 per cent year-on-year, with comparable sales up 1.6 per cent. This comes off the back of 85 new store openings for Lovisa globally during the first half, taking the store network to 1,095, including six Jewells stores in the United Kingdom.
The Jewells store count is down in the first half of FY26, with one store closed during 2025.
“The strong base we have built in Europe allowed that region to deliver the largest share of new store growth for the period with 39 new stores opened, including 16 in the UK and 10 in Germany,” Lovisa reported.
“The Americas region saw continued momentum in both the US and Canadian markets with 18 new stores opened across the region for the period.”
Lovisa added that 14 stores were closed during the period, with seven relocated. “We will continue to focus on store profitability and where landlords don’t provide a profitable rent we will action stores not delivering to required levels of return on investment.”
Looking ahead, Lovisa is expected to focus on further physical and digital growth globally.