Lovisa sees higher H1 revenue on global store expansion

Global fashion jewelry retailer Lovisa Holdings (ASX:LOV) announced a stellar set of financial results for the first half of fiscal year 2026, characterised by global expansion and significant profit surges.

The company reported a 23.3% increase in total revenue, reaching $500.7 million, driven largely by the opening of 85 new stores during the period.

Despite the scale of expansion, the company maintained a high underlying gross margin of 82.9%, an improvement of 50 basis points.

The growth translated directly to the bottom line, with underlying net profit after tax rising 21.5% to $69.6 million.

The board declared an interim dividend of 53 cents per share, up 3 cents from the previous year.

CEO John Cheston attributed the "outstanding results" to continued momentum in store rollouts and exceptional gross margin performance.

While the company is investing heavily in its "Jewells" brand—which contributed a strategic EBIT loss of $10.8 million as it scales—the core Lovisa business remains a cash powerhouse, generating $183.8 million in operating cash flow.

Early data from the second half of the year suggests the trend is holding, with total sales up 21.5% in the first seven weeks, signaling a confident outlook for the remainder of FY26.

At the time of reporting, Lovisa Holdings' share price was $27.61.