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Lovisa vs Temple & Webster shares: Which is the better growth stock?
Everyday investors are spoiled for choice on the ASX when it comes to high-growth retailers, but Lovisa Holdings Ltd (ASX: LOV) and Temple & Webster Group Ltd (ASX: TPW) stand out. If you're hunting a growth stock, you might find yourself weighing Lovisa's sparkly global expansion against Temple & Webster's home décor disruption. So, which one looks more promising as a buy right now? Here's how I see the Lovisa vs Temple & Webster shares match-up.
The case for Lovisa Holdings
Lovisa is a fast-growing fashion jewellery retailer, founded in Sydney in 2010 and now boasting over 1,136 stores across more than 50 countries. Its vertically integrated model lets Lovisa design, source, and sell its own branded jewellery affordably through brick-and-mortar stores and seven online sites, capturing trend-focused consumers around the world.
Notably, Lovisa sits at a market cap of $2.51 billion and generated earnings per share (EPS) of $0.792. The company's P/E ratio of 26.50 feels moderate for a growth-oriented retailer, and it currently offers a fully franked dividend yield of 3.5%. I also noticed a decent earnings yield of 3.77% and a history of paying increasing dividends, as recent years' totals outpace the past.
The case for Temple & Webster Group
Temple & Webster is an online-only retailer, best known for its massive range of over 200,000 furniture and homewares products. It started in 2011 and now boasts more than a million Aussie subscribers, as well as the private label Milan Direct. That focus on e-commerce gives TPW a different growth path – fewer overheads, nimble operations, and a highly scalable reach across Australia.
Temple & Webster's fundamentals, however, highlight its much smaller size: a market cap of $510.47 million. Its EPS is $0.064 – well below Lovisa's – and although it's profitable, its P/E ratio is a sky-high 128.82. TPW does not pay a dividend, preferring to invest every spare dollar into growth and market share.
Valuation comparison
Here's how three key stats line up side-by-side:
| Metric | Lovisa | Temple & Webster |
|---|---|---|
| Market Cap | $2.51 billion | $510.47 million |
| P/E Ratio | 26.50 | 128.82 |
| Dividend Yield | 3.50% | 0.00% |
| Earnings per Share | 0.792 | 0.064 |
Lovisa is clearly the larger, more established company and is valued much lower on a P/E basis. Its dividend yield is attractive – and half-franked – while Temple & Webster is growth-oriented and reinvests instead of paying dividends. The glaring difference is the P/E ratio; TPW trades at nearly five times Lovisa's multiple, which suggests either big future growth is anticipated or the shares are stretched.
Recent share price performance
Based on the most recent data (as at mid-September 2026), both stocks have been under the pump this year. Lovisa is down 20.16% year-to-date while Temple & Webster has plunged 67.32%. TPW's 2026 share price history shows some big up and down swings – with sharp drops (like -17.82% in one day) and a lower base around the $4–5 mark.
Lovisa has also seen volatility in the past month but the daily moves have generally been in the -4% to +13% range, whereas Temple & Webster has seen several massive one-day falls and occasional bounces. Overall, recent momentum points to Lovisa holding value much better in tough conditions.
Which is the better buy?
If I'm making the call between Lovisa and Temple & Webster as a growth stock, my pick would be Lovisa.
Here's why: Lovisa has a genuine global footprint, solid profitability, ongoing store rollouts, and a P/E that actually makes sense for a growth retailer. Plus, you get a fully-franked dividend of 3.5% as a sweetener. By contrast, Temple & Webster might have serious digital appeal, but its earnings are tiny, the P/E is sky-high, and the 67% share price drop makes me nervous about its near-term growth story. Unless Temple & Webster's next era of growth comes through – which could reward risk-tolerant punters – the numbers simply stack up for Lovisa.
So, if you're hungry for a top ASX growth stock right now, I'd lean toward Lovisa.
