Lovisa Holdings shares (ASX:LOV) jumped to a record high following the release of a strong FY25 earnings report, hitting a high of A$43.18 before closing at A$41.23, up 13.24% on the day. The company’s strategic growth initiatives and improved financial performance have resonated well with the markets, with today’s rally contributing to a year-to-date gain of 35.67% as bullish sentiment builds.
Looking at the financials, Lovisa reported a 14.2% increase in revenue, reaching $798.1 million, primarily driven by the expansion of its global store network. The company also opened 162 new stores and closed/relocated 31, resulting in a net increase of 131 stores and bringing the total to 1,031 stores across more than 50 markets.
Gross margin improved by 100 basis points to 82%, attributed to effective pricing strategies and management of supplier costs, whilst EBIT rose by 8.2% to $138.7 million.
In June, John Cheston succeeded Victor Herrero as CEO with Lovisa’s share price now 40% higher than it was at the end of May. Positive comparable store sales, achieving a 1.7% increase for the year, with a notable improvement in the second half has also been well received.
The outlook for Lovisa appears positive, with strong early FY26 results suggesting momentum is building. Management noted that the first eight weeks of FY26 have been strong, with comparable store sales up 5.6% and total revenue increasing by 28.0%.
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