I love investing in Australia's top shares when they're trading at a low price. I think this describes the opportunity with the current Lovisa Holding Ltd (ASX: LOV) share price.
As the chart above shows, the Lovisa share price has dropped 46% since August 2025 and it's down 15% from 7 August 2026.
After such a sizeable fall in a relatively small period of time, this could be the right time to consider one of the ASX's leading retailers. Let's look at why the jewellery retailer is so appealing.
Image source: Getty Images
Significant global growth plans
I think leading ASX growth shares need to have the potential to grow significantly in size today to unlock strong shareholder returns.
Lovisa already has around 1,100 global stores, but I think it can add significantly more. At the end of the FY26 half-year result, 219 of its global network was in Australia and New Zealand, with another 237 in the US.
It also has at least one store in Singapore, Malaysia, Hong Kong, Taiwan, China, Vietnam, South Africa, Namibia, Botswana, Zambia, the UK, Ireland, Spain, France, Germany, Belgium, Belgium, the Netherlands, Austria, Luxembourg, Switzerland, Poland, Italy, Hungary, Romania, UAE, USA, Canada, Mexico, a franchise in the Middle East and Africa, and a franchise in South America.
As you can see, it's in numerous markets and this allows it to choose where to invest for new stores and earn the best return. The global network makes it one of Australia's top shares, in my opinion.
Its expanding store count is a key growth tailwind. In HY26, the company reported its store count rose 15.5%. Combine that with positive comparable sales growth, and you've got a great revenue growth story.
In HY26, the company reported that Lovisa achieved revenue growth of 22.7%, with comparable sales growth of 2.2%.
Lovisa has also launched a new business called Jewells in the UK, which could add to earnings in the coming years.
Rapidly rising profit
The business is investing a fair amount into expanding its store network each year, yet its profit is also growing at an impressive pace, which is driving the underlying value of one of Australia's top shares.
Lovisa reported that, excluding Jewells, operating profit (EBIT) grew 20.4% to $109.1 million and net profit grew 21.5% to $69.6 million.
I think if any business can grow its earnings regularly by more than 20% per year, then its intrinsic value will compound strongly.
As the business becomes larger, I think scale benefits will continue to strengthen, and this should help its profit margins improve.
Compelling valuation for one of Australia's top shares
According to the forecast on Commsec, the Lovisa share price is valued at 28x FY26's estimated earnings, with projections that earnings per share (EPS) could climb by another 27% in FY27.
I think the Lovisa share price is undervalued for how much its store network could increase in the coming years. At the current valuation, I think it's one of Australia's top share opportunities, though there could be volatility over certain periods.
