Low-price jeweller Lovisa has reported a 14.2 per cent lift in total revenue for FY25, hitting $798.1 million, with Brett Blundy’s new Jewells retail concept adding to the boom.
The company’s gross margin also shot up by 100 basis points to 82 per cent, with gross profit growing by 15.7 per cent for the full year compared to the previous.
Comparable store sales, however, lifted by just 1.7 per cent.
Global CEO John Cheston said this marks another sales and profit boom for the jewellery business, matched with an accelerated store rollout in the second half. The group opened 162 new stores in FY25, including seven Jewells stores across the United Kingdom, bringing the total store portfolio to 1,031.
“It is an honour to be able to lead such an amazing global business and I am looking forward to maintaining our relentless focus on bringing brilliantly affordable fashion jewellery to the world,” Cheston said. “I would also like to share my appreciation to the global Lovisa team for their hard work to be able to achieve these solid results.”
Within FY25, Lovisa reported that investments continued to be made across team structures and technology to support the growing global business, now operating stores in 50 markets.
“This combined with increased spend on our digital marketing and events execution and increased mix of stores in higher cost markets, has resulted in higher cost of doing business for the period,” the company added. “This impact was offset by a reduction in CEO Long-Term Incentive expense from $11.9 million in the prior year to $2.1 million in the current period (including CEO sign on bonus paid during FY25).”
Lovisa’s earnings before interest and tax (EBIT) grew by 8.2 per cent in the period to $138.7 million, with net profit after tax (NPAT) up 4.8 per cent to $86.3 million.
The company noted that depreciation and interest expense both reflect the growth in the store network, with depreciation of store fitouts and lease right of use assets increasing in line with store numbers, and interest expense increasing due to the associated increase in lease liabilities.
Lovisa’s performance continued into the new financial year, with comp sales up 5.6 per cent in the first eight weeks of FY26. Total sales for this period are up 28 per cent compared to the first eight weeks of FY25.
“Since the end of the financial year, we have opened 16 new stores with 6 closures/relocations, with total store count at 1,041,” the company added. “We continue to focus on opportunities for expanding both our physical and digital store network, with structures in place to drive this growth in existing and new markets and formats, and expect store rollout momentum to continue.
“Our balance sheet remains strong with available cash and debt facilities supporting continued investment in growth.”
The group’s net cash flow from operating activities before interest and tax was $243.3 million. Capital expenditure of $55.2 million relates predominately to new store openings and refurbishments of current stores upon lease renewal, as well as investment into the group’s IT systems and supply chain capability.
Lovisa closed the financial year with $34.4 million in net debt, an increase of $10 million on the prior year.