Lovisa Holdings Ltd (ASX: LOV) shares have been one of the best performing ASX retailers over the past few years.
Lovisa has soared more than 400% over 5 years.
In the past year, Lovisa is up 16%.
The company jumped 16% when it released its FY25 result, showing solid execution of its international expansion.
In FY25, the company opened 131 net new stores, bringing its total store count to 1,031 stores as of 30 June 2025.
While Lovisa's story is far from over, several experts now believe the ASX 200 retailer is fully valued.
In its post-earnings season research note, Emerging Leaders Reporting season wrap & best picks, Macquarie Group Ltd (ASX: MQG) revised its rating on Lovisa shares.
The broker downgraded Lovisa shares from outperform to neutral and placed a price target of $40.90 on the stock.
Given that Lovisa shares closed at $39.03 on Friday, this suggests a 5% upside over the next 12 months.
Lovisa also currently offers a dividend yield of 1.38%.
While a combined capital growth and dividend return of 6.38% is higher than a term deposit, it is below the long-term average of the Australian share market.
According to Vanguard, Australian shares have returned an average of 9.3% per annum over the past 30 years.
Given this trajectory, investors may be looking for an ASX retailer with greater upside.
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Universal Store Holdings Ltd (ASX: UNI)
In the same research note, Macquarie named Universal Store as one of its top stock picks post earnings season.
Universal Store operates a number of popular businesses, including Universal Store, Perfect Stranger, and CTC (THRILLS and Worship).
With a market capitalisation of $670 million, Universal Store is a much smaller company than Lovisa.
The ASX retailer has been a strong performer over the past 5 years, climbing more than 100%.
Like Lovisa, it has been opening stores at a rapid rate. During the last financial year, nine net new stores were opened. In FY26, between 11 and 17 new stores are expected to open.
Macquarie has an outperform rating on Universal Store shares and a price target of $10.20.
Given that shares closed at $8.74 on Friday, that suggests 17% upside from here.
The company also currently offers a dividend yield of 3.78%, bringing the total potential return to above 20% over the next 12 months.
And it's not just Macquarie that is tipping Universal Store shares to deliver strong returns over the next 12 months.
Last week, The Motley Fool's James Mickleboro reported that Universal Store had made Bell Potter's list of top picks to buy in September.
