Lovisa (LOV) H1 2026 earnings summary

Executive summary

• Achieved record half-year sales of $500.7m, up 23.3% year-over-year, driven by global store network expansion and 2.2% comparable store sales growth.

• Opened 85 new stores, bringing the total to 1,095 across 50+ markets, with the largest growth in Europe and the Americas.

• Underlying EBIT rose 20.4% to $109.1m and underlying NPAT increased 21.5% to $69.6m, excluding Jewells start-up losses.

• Interim dividend increased by 3 cents to 53.0 cents per share (50% franked), representing 100% of earnings.

• Underlying results exclude the Jewells startup, which reported an EBIT loss of $10.8m.

Financial highlights

• Underlying revenue up 22.7% to $498.1m; gross profit rose 23.0% to $411.6m; underlying gross margin improved to 82.9%, up 50bps year-over-year.

• Underlying EBIT margin and NPAT margin improved alongside sales growth.

• Cash from operations before interest and tax was $183.8m, up 30.3%; net cash at period end was $12.0m.

• Capital expenditure was $31.7m, mainly for new store fit-outs and refurbishments.

• Dividends paid during the half totaled $29.9m.

Outlook and guidance

• Confident in maintaining store rollout momentum, with a strong pipeline for new stores and digital expansion in the second half.

• Trading in the first seven weeks of the second half showed total sales up 21.5% and comp sales up 1.6% year-over-year.

• Board will continue to assess dividend levels based on profitability, cash flows, and growth needs.