Image source: Getty Images
Lovisa vs Universal Store shares: Which retail growth stock stands out?
For Aussie investors interested in retail growth shares, Lovisa Holdings Ltd (ASX: LOV) and Universal Store Holdings Ltd (ASX: UNI) are both eye-catching. Each is a big name in its space, with global ambitions and strong domestic roots. But if you're looking for the better buy between Lovisa and Universal Store shares, it's worth digging into how they compare on business focus, dividends, valuation, and recent returns.
The case for Lovisa
Lovisa is a specialist in fast-fashion jewellery and accessories, founded in Sydney in 2010. According to its most recent public description, Lovisa has rapidly expanded to more than 1,136 stores across more than 50 countries, with an online presence in several markets. The brand is known for its affordable, on-trend products and a highly scalable, vertically integrated retail model that lets it design and source all its own stock.
Three fundamentals stand out for me:
- Market cap: At $2.5 billion, Lovisa is the larger business here, reflecting its much broader global footprint.
- Dividend yield: The current yield is 3.8%, with dividends being partially franked (recently 50%). Lovisa pays regular dividends, but the franking level varies, which can affect after-tax returns for Aussie shareholders.
- P/E ratio: With a price-to-earnings ratio of 26.21, investors are paying up for Lovisa's proven global growth and scale. EPS sits at $0.792 according to the latest snapshot provided.
Lovisa's growth mindset, agile product cycles, and far-reaching network have allowed it to punch well above its weight in fashion jewellery. Dividends have been consistently paid and generally trending upward, though payout franking levels do fluctuate.
The case for Universal Store
Universal Store Holdings is a leading Australian specialty fashion retailer, mainly targeting younger customers with casual apparel, footwear, and accessories. The business, which started in 1998, operates both brick-and-mortar outlets and e-commerce, but has a much smaller network than Lovisa, with 123 stores.
Notable points for Universal Store:
- Dividend yield: At 6.06%, the yield is considerably higher than Lovisa's, and importantly, fully franked – giving Aussie investors the advantage of maximum tax credit.
- P/E ratio: The price-to-earnings ratio is a bit higher at 30.04, implying growth expectations are also being priced in. Reported EPS is $0.236.
- Market cap: Universal Store is valued at $544 million – much smaller than Lovisa, reflecting its more concentrated operations and different stage of growth.
Dividend history shows steadily rising, fully franked payouts, suggesting a focus on rewarding shareholders from current profits. Universal Store may lack Lovisa's scale, but its combination of niche focus and strong dividend credentials is appealing.
Valuation comparison
Here's a clear side-by-side of the key numbers that matter:
| Metric | Lovisa | Universal Store |
| Market cap | $2.50 billion | $543.95 million |
| P/E ratio | 26.21 | 30.04 |
| Dividend yield | 3.8% (partially franked, 50%) | 6.06% (fully franked) |
| Dividend per share | $0.86 | $0.43 |
| Earnings per share | $0.792 | $0.236 |
| Year to date (YTD) return | -19.9% | -6.0% |
Note: Universal Store's P/E ratio is based on a lower absolute EPS, which may reflect its stage in the growth cycle; Lovisa delivers more earnings per share for each dollar you pay at current prices. Also, Lovisa's reported P/E ratio and EPS are mathematically consistent, and the same holds for Universal Store.
Recent share price performance
Comparing the period from 24 August to 18 September 2026:
- Lovisa saw a negative trend, dropping from $23.30 on 24 August to $22.62 on 18 September. Its YTD return stands at -19.9%, signalling the stock has struggled in 2026 so far.
- Universal Store also faced a dip, from $8.56 on 24 August to $7.09 on 18 September, but its YTD return is -6.0% – a softer fall compared to Lovisa over the same period.
It's clear both stocks have had a tough year to date, with Universal Store holding up better overall.
Which is the better buy?
If I had to pick between Lovisa Holdings and Universal Store shares right now, my vote goes to Universal Store. The deciding factors are the much stronger, fully franked dividend yield (6.06% vs 3.8%), and the more modest share price slide so far in 2026. While Lovisa is the bigger and more global growth play, its yield is lower and only partly franked. Universal Store's P/E is slightly higher, but not by a massive margin given growth expectations in specialty retail.
While neither stock has set the market on fire this year, Universal Store's high, well-franked yield looks like a solid reward for riding out what could be a transitional year. If seeking both income and a steady hand amid volatility, I think Universal Store edges out Lovisa right now. Of course, long-term growth investors wanting global scale may still prefer Lovisa, but for me, the balance tips in favour of Universal Store today.
