It's a good day for Lovisa investors, with the Lovisa share price up almost 16% at the time of writing.
This comes after Lovisa Holdings Inc (ASX: LOV) released its FY25 results this morning.
With tariff concerns looming over the fast fashion jeweller over the past few months, this has certainly given Lovisa shareholders something to celebrate.
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What did Lovisa report?
- Sales increased 14.2% on the prior year to $798.1 million
- Gross margin up 100bps
- EBIT up 8.2% to $138.7 million
- NPAT up 4.8% to $86.3 million
- 131 net new stores opened
What else happened in FY25?
After a challenging period for Lovisa shares, FY25 has proven to be a standout year for the fast-fashion retailer.
During FY25, Lovisa welcomed a new CEO, with John Cheston taking over from Victor Herrero in June.
Lovisa delivered a 14.2% increase in revenue, driven by continued growth in its global store network.
During the year, the company opened 162 new stores and closed/relocated 31. This brought Lovisa's total store count to 1,031 stores at the end of FY25.
In FY25, the company entered 4 new markets. Lovisa now operates in more than 50 markets.
During the year, Lovisa also returned to a positive comparable sales trajectory with improved second half, delivering 1.7% for the year, following just 0.1% in the first half.
Management also noted that Lovisa has started the first 8 weeks of FY26 on a strong note, with comparable store sales up 5.6% and total revenue up 28.0%
Lovisa's FY25 gross margin was another highlight, increasing by 100 bps to 82%.
Management attributed this to ongoing management of pricing structures and adequate management of supplier costs and promotions.
This allowed the company to increase earnings before interest and tax (EBIT) by 8.2% to $138.7 million, and net profit after tax (NPAT) by 4.8% to $86.3 million.
What did management say?
Commenting on the result, Lovisa's new CEO John Cheston said:
Lovisa has once again been able to deliver solid sales and profit growth, with the highlight another outstanding Gross Margin performance, and the acceleration of the store rollout in the second half. It is an honour to be able to lead such an amazing global business and I am looking forward to maintaining our relentless focus on bringing brilliantly affordable fashion jewellery to the world.
Share price snap shot
Lovisa has been one of the strongest post-liberation day recovery stories on the ASX.
It reached a 52-week low of $20.23 in April, as tariff concerns weighed on the ASX 200 retailer. Since then, it has more than doubled, and is trading at $42.21 at the time of writing.
Over the past 5 years, it has been just as impressive, rising 465% over that time frame.
