Lovisa (LOV) H2 2024 earnings summary

Executive summary

• FY2024 delivered strong results with total sales up 17.1% to $698.7m, driven by 128 new stores opened, expanding the network to 900 stores across 46 markets, including 7 new markets such as China, Vietnam, and Ireland, despite a 2% decline in comparable store sales.

• EBIT rose 21.2% to $128.2m and NPAT increased 20.9% to $82.4m, supporting a final dividend of 37 cents per share.

• Cash flow from operations reached $240m, up 28%, supporting global expansion and shareholder returns.

Financial highlights

• Revenue reached $698.7m, up 17.1% year-over-year; gross profit rose 18.7% to $565.8m at an 81% gross margin, up 110 basis points year-over-year, driven by targeted price increases and healthy inventory management.

• EBITDA increased 24.2% to $223.5m; EBIT up 21.2% to $128.2m; NPAT up 20.9% to $82.4m.

• EPS increased by 12.1 cents to 75.4 cents; full year dividends totaled 87 cents, up 18 cents from FY23.

• Cash from operations before interest and tax was $240m, with capital expenditure of $23m, mainly for new store fit-outs.

• Net debt at year-end was $23.5m, down $10m from June 2023, with total cash and debt facilities of $120m.

Outlook and guidance

• First eight weeks of FY2025 saw comparable store sales up 2% and total sales up 12.7% year-over-year, with 10 new stores opened and two closures.

• Continued focus on global expansion, both physical and digital, with a strong balance sheet and available cash facilities to support growth.

• No specific guidance on gross margin or store rollout numbers, but management aims to match or exceed prior years' store openings.