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Tag: Lovisa

  • Lovisa Hits $938.8 Million in FY26 Sales on Fast Jewellery Demand

    Lovisa Hits $938.8 Million in FY26 Sales on Fast Jewellery Demand

    Lovisa posted double-digit revenue and profit growth for fiscal 2026, generating $938.8 million in total sales across its global store network. The result shows budget-conscious shoppers continued buying affordable accessories despite persistent cost-of-living pressure in Australia and key overseas markets.

    Tightened household budgets did little to slow store turnover. Fast-fashion jewellery continues to capture discretionary spending from consumers who pull back on higher-priced apparel and luxury goods, giving mass-market operators sustained foot traffic across shopping centres.

    Demand across budget accessories

    Lovisa relied on its high-turnover model to drive revenue across its retail footprint. Low price points allowed the brand to maintain transaction volume even as inflation squeezed general consumer spending.

    The performance reflects a broader split in retail spending across the Asia-Pacific region. While big-ticket discretionary categories face softer demand, impulse-driven accessory purchases continue to clear inventory rapidly.

    Market rivals and category pressure

    Competition in the affordable jewellery segment is intensifying across major retail hubs. New challenger brands, including ventures launched by former Lovisa executives, are expanding store networks and targeting the same demographic with rapid product drops.

    Sustaining double-digit expansion will depend on how effectively the chain defends mall real estate and controls store operating costs. Market watchers will track upcoming store rollout milestones and regional trading updates in the next financial reporting cycle.

  • Lovisa Lifts Full-Year Profit 10.7 per Cent as Network Reaches 1,136 Stores

    Lovisa Lifts Full-Year Profit 10.7 per Cent as Network Reaches 1,136 Stores

    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.

  • Lovisa Reports Record Sales And Profit Growth Amid Accelerated Global Expansion

    Lovisa Reports Record Sales And Profit Growth Amid Accelerated Global Expansion

    Lovisa, the popular jewelry chain, reported significant growth in its sales and profit in the past fiscal year, alongside an accelerated expansion program.

    Revenue and Sales Growth

    Lovisa’s revenue for the fiscal year, ending June 29, experienced a 14.2% surge, reaching A$798.1 million. This increase was primarily due to the persistent expansion of the store network. During the year, Lovisa launched 162 new stores, wrapping up the year with a total of 1,031 stores across over 50 markets. A noteworthy milestone was the opening of its first store in Zambia and the establishment of three new franchise markets in Ivory Coast, the Republic of Congo, and Panama.

    Comparable store sales also saw a growth of 1.7%, showing a marked improvement in the second half of the year, following a relatively stagnant first half.

    Profit Increase

    Lovisa also reported a significant rise in its earnings and net profit. Earnings before interest tax saw a hike of 8.2%, reaching $138.7 million while the net profit after tax rose by 4.8%, amounting to $86.3 million.

    Lovisa’s global CEO, John Cheston, remarked on the company’s consistent performance, highlighting its impressive gross margin performance and the acceleration of store rollouts in the second half of the fiscal year. Cheston expressed his eagerness to continue prioritizing affordable, high-quality fashion jewelry.

    Outlook for the New Fiscal Year

    In the initial eight weeks of the new fiscal year, Lovisa reported a 28% total sales increase and a 5.6% rise in comparable sales, along with the addition of 10 new stores. The company intends to keep expanding both its physical and digital store networks, with strategic plans to foster growth in both existing and new markets.

    Questions & Answers

    What contributed to Lovisa’s significant growth in the past fiscal year?
    Lovisa’s growth was primarily driven by the continued expansion of its store network, with 162 new stores opened during the year.

    What were the earnings and net profit for Lovisa in the last fiscal year?
    The earnings before interest tax rose 8.2% to $138.7 million and the net profit after tax increased by 4.8% to $86.3 million.

    What are Lovisa’s plans for the new fiscal year?
    Lovisa plans to continue expanding its physical and digital store networks, with strategies in place to drive growth in existing and new markets.

  • New stores openings deliver Lovisa good sales

    New stores openings deliver Lovisa good sales

    Lovisa managing director Shane Fallscheer told investors on Thursday he was pleased to deliver a “solid result” for FY19 in one of the more difficult trading environments the fashion jewelry retailer has experienced in recent times.

    Revenue was up 15.3 percent year on year to $250.3 million, thanks to the addition of 64 new stores in FY19. The retailer’s total store count as at June 30, 2019 was 390.

    Same-store sales, however, were down 0.5 percent on the previous corresponding. Fallscheer attributed the weak result to softer trading conditions in the first half of FY19, especially in Australia, and the lack of major trends in the fashion jewelry space, which have helped drive strong same-store sales growth in the past.

    He also noted that Lovisa “overperformed” in FY18 – especially in the first half, when same-store sales increased 7.4 percent – which made it harder to deliver comparable sales growth in FY19.

    The retailer reported an increase of 50 basis points in gross margin to 80.5 percent, thanks to higher USD hedge rates and its focus on inventory management and promotional effectiveness. Gross profit increased by 16 percent to $201.4 million.

    The hiring of several senior executives, the relocation of Lovisa’s third-party logistics hub from Hong Kong to China, the launch of e-commerce capabilities in Australia and New Zealand and continued store rollouts in new territories, however, drove up to the cost of doing business as a percentage of sales.

    The retailer reported a 2.8 percent increase in earnings before interest and tax to $52.5 million and a 3 percent increase in net profit after tax to $37 million.

    Lovisa finished the year with a cash balance of $11.2 million and a strong balance sheet, Chris Lauder, Lovisa’s CFO told investors.

    Looking ahead, the key driver of growth for Lovisa is the continued expansion of stores around the world.

    The retailer currently has 404 stores (it has opened 14 so far in FY20) in around a dozen countries, including Australia, New Zealand, Singapore, Malaysia South Africa, the UK, Spain, France, the US, the Middle East and Vietnam.

    Lovisa’s biggest market is Australia, where it has 154 stores, followed by South Africa with 61 and the UK with 38, but growth is accelerating in the US, Fallscheer said, where it currently operates 28 stores in California, Texas, Florida and Illinois.

    “The eventual size and timing of the store rollout [in the US] will depend on being able to deliver quality stores that meet criteria rather than a [specific] number target,” Fallscheer told investors.

    He noted that Lovisa is beginning to gain traction with US landlords, and that it is targeting “small wins” to offset the higher cost of doing business and currency headwinds in the market, including minimizing markdowns and looking at the price.

    “We constantly review each market, each style and how all of that interacts with each other. We’re constantly looking at the price…as we mature in the US market, there are probably some slight wins there,” Fallscheer said.

    But he admitted, “there’s going to be a gap between price increase and currency decline”.

    Same-store sales growth in FY20 so far is within the retailer’s target range of 3 to 5 percent, Fallscheer said. He attributed this to price gains and increased volumes.

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  • Lovisa shares tank as CEO exits the brand

    Lovisa shares tank as CEO exits the brand

    Lovisa has lost its second senior executive in just over six months, announcing on Tuesday evening that chief executive Steve Doyle has resigned to pursue other interests, effective 20 April.

    Shares in Lovisa fell 8 per cent in early Wednesday trading to $9.20 as the news set in.

    Doyle’s departure comes after the resignation of former chief financial officer Graeme Fallet last September after just one and a half years with the business.

    The accessories retailer broke the news to the market alongside a trading update, which shows that the business has booked year to date comparable store sales of 7.6 per cent to the end of the third quarter and a 20.3 per cent increase in top line revenue.

    Lovisa booked a 7.4 per cent increase in comparable store sales for the first half of FY18 and top line sales growth of 18.8 per cent compared to the prior corresponding period.

    At the time Doyle said Lovisa had experienced a “pleasing start to the year”.

    “It’s pleasing that the business has been able to maintain the solid start to the year as we continue our global rollout, helping to deliver both sales growth and gross margin expansion,” Doyle said in January.

    No information was provided on whether a search for a new CEO had been completed or begun, but founder and managing director Shane Fallscheer will continue to lead the company.

    “On behalf of the board, I thank Steve for his tireless work and commitment during the past two and a half years in driving the continued success of the business, including playing a key role in its international expansion to date,” Fallscheer said in a statement.

    “Steve has been a great asset to the company and leaves the business in excellent shape.”

    Doyle had been at the helm of Lovisa since October 2016 after joining to oversee the company’s increasingly international ambitions.

    Lovisa also said on Tuesday that it had opened 5 new stores during the half and closed 4 – with 320 stores now trading.

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  • Lovisa positive ahead of Christmas

    Lovisa positive ahead of Christmas

    Accessories retailer Lovisa has provided a trading update heading into the Christmas trading period, telling the market on Tuesday morning that same store sales are slightly above its long-term target between 3 – 5 per cent like for like growth.

    The retailer has opened 16 new stores so far in FY18, which represents more than half of the 20-30 locations it plans to open, bringing the total network to 304 globally.

    The company did say that its mindful about trading performance on the prior corresponding period heading into Christmas, given that it’s cycling some “particularly successful ranges”.

    “As much as this is a pleasing start to the financial year, over the coming months we continue to cycle some particularly strong ranges from last year,” managing director Shane Fallscheer told investors at Lovisa’s AGM.

    “Coupled with this we remind everyone that both Spring Racing and especially Christmas are still to come and play a very large part of both our first half and full year’s performance.”

    Reflecting on FY17, chairman Michael Kay said he was “delighted” with the performance after a tough FY16, which he conceded was a difficult year for the company.

    “We said we had learned from the events of FY16, that we were building bench strength at board and management levels and were determined to invest ahead of our growth ambitions to ensure we had the capability to manage our increasing footprint and the risks inherent in businesses of this type,” he said, noting year-to-date trading is currently above budgetary expectations.

    “In that context, the board is delighted with your company’s performance in FY17.”

    Lovisa booked a 75 per cent increase in net profit after tax to $29 million in FY17, underpinned by a 10.3 per cent increase in like-for-like sales.

    Its US expansion trial will be underway from next month with the opening of a store at Glendale Galleria – a large suburban mall in Los Angeles – which is the first of a small group of pilot stores to open in California.

    “We don’t intend to talk to the performance or the duration of pilot programs which again are currently underway in Spain and soon to be the US,” said Fallscheer.

    “Once the board make any decisions in the future in regards to any markets where we are running pilot programs we will announce this to the market at this time.”

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  • Lovisa buoyed by expanding store network

    Lovisa buoyed by expanding store network

    Jewellery retailer, Lovisa, has exceeded consensus forecasts by booking double-digit revenue, earnings and profit increases, signalling a strong start to FY18 trading.

    Revenue increased by 16.5 per cent to $178.7 million for the year ended 30 June on the addition of 38 stores to the company’s network, while same-store sales increased 10.3 per cent.

    Strong top line sales drove a 68 per cent increase in earnings before interest and tax (EBIT) to $40.7 million and a 75.5 per cent increase in net profit after tax (NPAT) to $29 million.

    Momentum has continued into FY18 and is above management’s long term same-store growth target of 3 – 5 per cent for the first eight weeks of trading.

    CEO Steve Doyle declined to provide specific guidance, but said Lovisa plans to open between 20 and 30 stores in FY18 and will consider non-organic growth opportunities as it attempts to cycle strong results from the prior year.

    South Africa remained Lovisa’s fastest growing market in terms of store openings, with 14 new locations in the country, alongside a company-owned pilot in Spain and franchise launches in Vietnam and Bahrain bringing the total network of stores to 288.

    Doyle wouldn’t comment when asked whether additional investment would be made in Spain, but told investors on Thursday morning that the market fundamentals were positive for the company.

    “What we like about Spain is its fashionable,” he said. “One of the key things we look for is that fashionability, that our customer is there and she wears the kind of product that we sell – we certainly see that in Spain.”

    Doyle said planning is underway for the upcoming spring racing period, but that Australian-based events were becoming less important to the company as the proportion of offshore stores to local ones reaches 50 per cent.

    “The continued strong comparable sales growth in the second half was particularly pleasing, as we had initially anticipated some softening following the cycling of retail price increases in 2016,” Doyle said.

    “We continued to expand and optimise our store network to drive growth and performance…due diligence in other markets and opportunities to generate new country growth continues and we are optimistic about Lovisa’s global rollout plans.”

    Gross margins increased by 78.8 per cent during the year, as currency headwinds normalised, prices increased and markdowns became less frequent.

    Cost of doing business (CODB) as a percentage of sales reduced to 53 per cent, despite growth in stores on efficiencies in labour, distribution and occupancy.

    Capital expenditure came in at $8.8 million, impacted by continued international expansion, although a net cash position of $11.0 million was declared at years end.

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  • Honey Birdette eyes Hong Kong

    Honey Birdette eyes Hong Kong

    Upmarket Australian lingerie retailer Honey Birdette is preparing to open its first retail store in Hong Kong.

    Honey Birdette was founded in 2006 by Eloise Monaghan offering premium lingerie and sex toys and entered a strategic partnership with multi-brand Australian retailer BB Retail Capital in 2011. It now has 45 stores in Australia.

    In what will be the brand’s first international foray, two stores will open in central London within the next six months, the first in Covent Garden.

    Following that, Honey Birdette will open in Hong Kong, Tokyo, Paris and Rome, the company has revealed, before entering the US.

    Separately, BBRC has announced an international expansion of its more mass market chain Bras N Things, with the first two stores opening in South Africa.  That brand has 170 stores in Australia and New Zealand and BBRC is planning on expanding into other international markets as well, but has not specifically referred to any Asian ambitions.

    “Bras N Things has an established and enviable reputation in Australia and the time is now right to expand beyond our shores, taking our expert fit service to new markets and empowering women globally,” said Bras N Things CEO, George Wahby.

    BBRC is best known in Asia as the owner of the Lovisa chain of accessories stores.

    Honey Birdette, meanwhile, is clearly targeting a high income demographic. In the UK retail prices are expected to start at £60 (US$85) for a bra and £30 ($43) for a pair of briefs.

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