Lovisa Lifts Full-Year Profit 10.7 per Cent as Network Reaches 1,136 Stores
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Australian fast-fashion jewellery retailer Lovisa increased net profit after tax by 10.7 per cent to $95.6 million for the 2026 financial year.
Total revenue rose 17.6 per cent to $938.8 million, supported by 160 store openings and a 2 per cent rise in global comparable store sales. Gross margin widened by 60 basis points to 82.6 per cent, helped by lower sourcing costs and tighter promotional spending, while earnings before interest, tax, depreciation and amortisation grew 20.9 per cent.
Offshore sales outpace domestic trade
Western markets delivered the bulk of the growth. Sales in the Americas rose 29.6 per cent, while European revenue increased 29.5 per cent over the twelve-month period.
The company accelerated its physical expansion by launching 160 locations and shuttering 43 underperforming sites. That netted 117 additions and lifted the total footprint to 1,136 stores across more than 50 markets. Lovisa relies on small-format stores with low fitout costs to enter new territories quickly, a model that allows it to exit unprofitable leases without heavy capital losses.
Early momentum in the new financial year
Trading in early fiscal 2027 maintained that pace. Total sales climbed 16.4 per cent over the first eight weeks of the new financial year, with comparable store sales up 3 per cent and momentum accelerating through August.
Management plans to add further physical and digital stores across both established and new territories. Investors will track whether store opening targets hold as the group rolls into additional franchise and company-owned markets in the first half.
Questions & Answers
Q.Which geographical regions were the primary drivers of Lovisa's sales growth in the 2026 financial year?
Which geographical regions were the primary drivers of Lovisa's sales growth in the 2026 financial year?
Western markets delivered the majority of the growth for Lovisa. Sales saw a significant increase in the Americas, rising by 29.6 per cent, and European revenue also grew substantially by 29.5 per cent during the twelve-month period.
Q.What strategies did Lovisa employ to improve its gross margin in the last financial year?
What strategies did Lovisa employ to improve its gross margin in the last financial year?
Lovisa widened its gross margin by 60 basis points to 82.6 per cent through a combination of strategies. This improvement was primarily achieved due to lower sourcing costs for its products and more disciplined, tighter promotional spending across its operations.
Q.How many new stores did Lovisa open and close during the 2026 financial year, and what was the net change?
How many new stores did Lovisa open and close during the 2026 financial year, and what was the net change?
Lovisa opened 160 new locations during the financial year. Simultaneously, the company closed 43 underperforming sites. This resulted in a net addition of 117 stores, bringing their total store count to 1,136 across more than 50 markets.
Q.What is Lovisa's store model that allows for quick expansion and flexible exit strategies?
What is Lovisa's store model that allows for quick expansion and flexible exit strategies?
Lovisa uses a model of small-format stores with low fitout costs. This approach enables the retailer to quickly enter new territories. The model also provides flexibility to exit unprofitable leases without incurring substantial capital losses.