Lovisa Holdings Ltd. (LOV) AI Stock Analysis

• Market Cap: AU$3.32B
• Dividend Yield: 2.57%
• Average Volume (3M): 183.68K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 1.66
• Revenue Growth: 14.24%
• EPS Growth: 3.58%
• Country: AU
• Employees: 8,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.27
• Shares Outstanding: 110,738,495
• 10 Day Avg. Volume: 166,603
• 30 Day Avg. Volume: 183,682
• PEG Ratio: 10.14
• Price to Book (P/B): 44.59
• Price to Sales (P/S): 4.39
• P/FCF Ratio: 23.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$36.54
• Price Target Upside: 21.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$32.00 ▲(6.60% Upside)

Lovisa Holdings Ltd. demonstrates strong financial performance with robust growth and profitability, but the high leverage poses risks. Technical analysis indicates bearish momentum, and the stock appears overvalued based on its P/E ratio. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Lovisa's ability to effectively capture market demand and expand its customer base, supporting long-term business sustainability.

Profitability

A strong net profit margin reflects Lovisa's operational efficiency and ability to maintain profitability, which is crucial for long-term financial health.

Cash Flow Management

Effective cash flow management ensures Lovisa can fund its operations and growth initiatives, providing a solid foundation for future expansion.

Negative Factors

High Leverage

High leverage poses financial risks, potentially impacting Lovisa's ability to invest in growth and weather economic downturns, necessitating careful debt management.

Equity Ratio

A low equity ratio indicates dependency on debt, which can limit financial flexibility and increase vulnerability to interest rate fluctuations.

Valuation Concerns

High valuation metrics may indicate market expectations that are difficult to meet, potentially leading to volatility and pressure on future stock performance.

Lovisa Holdings Ltd. Business Overview & Revenue Model

Company Description

Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories. It designs, develops, sources, and merchandises fashion jewelry and accessories under the Lovisa brand name. As of July 3, 2022, the company operated 629 retail stores, including 44 franchise stores. It operated owned stores in Australia, New Zealand, Singapore, Malaysia, South Africa, the United Kingdom, France, Luxembourg, Belgium, Germany, the Netherlands, Austria, Switzerland, the United States, Poland, Canada, Spain, and the Middle East. Lovisa Holdings Limited was founded in 2010 and is based in Hawthorn, Australia.

How the Company Makes Money

Lovisa generates revenue primarily through the sale of its fashion jewelry and accessories in its retail stores and online platforms. The company employs a fast-fashion retail model, which allows it to quickly respond to changing fashion trends and consumer preferences, thus driving foot traffic and sales. Key revenue streams include in-store sales, e-commerce sales, and seasonal promotions. Lovisa also benefits from a high inventory turnover rate due to its frequent product updates, encouraging repeat purchases from customers. Additionally, strategic partnerships with suppliers and manufacturers enable the company to maintain cost efficiency while ensuring a diverse and appealing product range, contributing positively to its earnings.

Lovisa Holdings Ltd. Financial Statement Overview

Summary

Lovisa Holdings Ltd. exhibits strong financial performance with robust revenue growth and profitability. The company effectively manages its cash flows, supporting its operations and growth. However, the high leverage on the balance sheet suggests potential risks that need careful management.

Income Statement

Lovisa Holdings Ltd. has demonstrated strong revenue growth with a 9.1% increase in the latest year, supported by a robust gross profit margin of 82%. The net profit margin is healthy at 10.8%, indicating efficient cost management. EBIT and EBITDA margins are solid, reflecting operational efficiency. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 6.36, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is impressive at 109.9%, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing. While profitability is strong, the high leverage warrants caution.

Cash Flow

Operating cash flow is strong, with a positive free cash flow growth rate of 3.2%. The operating cash flow to net income ratio is 2.41, indicating good cash generation relative to net income. The free cash flow to net income ratio is 1.70, reflecting efficient cash conversion. Overall, the cash flow statement indicates healthy cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	798.13M	798.13M	698.66M	596.46M	458.71M	288.03M
Gross Profit	654.67M	654.67M	565.79M	476.71M	361.83M	220.96M
EBITDA	176.59M	176.59M	221.55M	180.19M	142.73M	97.70M
Net Income	86.33M	86.33M	82.41M	68.16M	58.39M	24.83M
Balance Sheet
Total Assets	698.43M	698.43M	532.80M	525.31M	373.52M	298.26M
Cash, Cash Equivalents and Short-Term Investments	49.11M	49.11M	30.52M	31.65M	34.15M	35.55M
Total Debt	499.64M	499.64M	359.07M	372.59M	228.37M	200.69M
Total Liabilities	619.88M	619.88M	452.51M	445.32M	309.20M	252.55M
Stockholders Equity	78.55M	78.55M	80.29M	79.99M	64.32M	45.72M
Cash Flow
Free Cash Flow	146.88M	146.88M	148.91M	64.30M	93.18M	69.96M
Operating Cash Flow	207.91M	207.91M	187.51M	141.16M	130.56M	85.30M
Investing Cash Flow	-55.17M	-55.17M	-23.27M	-60.72M	-34.60M	2.26M
Financing Cash Flow	-143.06M	-143.06M	-165.16M	-83.61M	-97.47M	-73.08M

Lovisa Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LOV, the sentiment is Neutral. The current price of 30.02 is above the 20-day moving average (MA) of 29.38, below the 50-day MA of 31.75, and below the 200-day MA of 32.45, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 44.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:LOV.

Lovisa Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOV	61 Neutral	AU$3.32B	38.38	110.44%	2.57%	14.24%	3.58%
AX1	61 Neutral	AU$561.92M	9.24	12.90%	7.33%	1.58%	-4.71%
PMV	60 Neutral	AU$2.13B	12.85	10.29%	3.56%	-48.80%	-35.88%
UNI	58 Neutral	AU$645.22M	27.70	15.62%	4.70%	15.51%	-32.98%
MHJ	54 Neutral	AU$157.79M	72.73	1.24%	―	-0.20%	―
MYR	42 Neutral	AU$803.41M	-2.79	-36.66%	6.38%	13.78%	-413.50%

Lovisa Holdings Ltd. Corporate Events

Lovisa Issues New Unquoted Performance Rights Under Employee Incentive Plan

Lovisa Holdings Limited has notified the market of the issue of 38,601 unquoted performance rights expiring on 30 September 2028 under its employee incentive scheme. These new equity-based awards, which will not be quoted on the ASX, are part of the company’s ongoing use of long-term incentives to align staff and executive interests with shareholder value and support the retention and motivation of key personnel as Lovisa continues to execute its growth strategy.

The most recent analyst rating on (AU:LOV) stock is a Buy with a A$38.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Lovisa Holdings AGM Results: Key Resolutions Passed, Remuneration Report Rejected

At the 2025 Annual General Meeting, Lovisa Holdings Limited announced the voting results for various resolutions. While resolutions concerning the election and re-election of directors and the approval of securities grants were passed, the 2025 Remuneration Report was not approved, marking a first strike under the Corporations Act 2001. This outcome may have implications for the company’s governance and stakeholder relations.

The most recent analyst rating on (AU:LOV) stock is a Buy with a A$42.50 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Lovisa Holdings Ltd. Releases 2025 Annual Report

Lovisa Holdings Ltd. has released its Annual Report for 2025, providing a comprehensive overview of its financial performance and strategic initiatives. The report includes insights into the company’s risk and capital management, asset platform, and business performance, indicating a focus on strengthening its market position and enhancing shareholder value.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$41.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Lovisa Holdings Updates Corporate Governance Statement for FY2025

Lovisa Holdings Limited has released its updated corporate governance statement for the financial year ending June 29, 2025. The statement, approved by the board, highlights the company’s adherence to key corporate governance principles, including board management roles, director appointment processes, and accountability measures. This announcement underscores Lovisa’s commitment to maintaining transparency and robust governance practices, which are crucial for sustaining investor confidence and ensuring long-term operational success.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$41.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.