Lovisa Holdings Ltd. (LOV) AI Stock Analysis

• Market Cap: €3.57B
• Dividend Yield: 3.05%
• Average Volume (3M): 279.33K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 1.65
• Revenue Growth: 11.86%
• EPS Growth: 14.62%
• Country: AU
• Employees: 8,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): 0.52
• Shares Outstanding: 110,715,590
• 10 Day Avg. Volume: 197,153
• 30 Day Avg. Volume: 279,329
• PEG Ratio: 10.28
• Price to Book (P/B): 33.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.90
• 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: €31.38
• Price Target Upside: -4.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: AU$35.00 ▲(6.87%Upside)

Lovisa Holdings Ltd. has strong financial performance with impressive revenue growth and profitability, which is the most significant factor contributing to the score. Technical analysis suggests bullish momentum but also highlights overbought conditions, which may pose short-term risks. The stock's high P/E ratio points to a premium valuation, suggesting caution despite the attractive dividend yield.

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 Holdings Ltd. generates revenue primarily through the sale of its fashion jewelry and accessories via its extensive network of retail stores and online platforms. The company's revenue model is centered on maintaining a fast-fashion approach, which involves quickly bringing to market a broad variety of trendy jewelry pieces that appeal to a wide demographic. By keeping its designs fresh and aligned with current fashion trends, Lovisa attracts repeat customers and drives sales growth. Additionally, Lovisa benefits from strategic store locations in high-traffic shopping areas and malls, enhancing its visibility and customer reach. The company may also engage in partnerships or collaborations with designers or influencers to expand its market presence, though specific partnerships are not detailed here. Furthermore, Lovisa's cost-effective production and supply chain management contribute to its profitability, allowing it to offer competitive pricing while maintaining healthy margins.

Lovisa Holdings Ltd. Financial Statement Overview

Summary

Lovisa Holdings Ltd. exhibits strong financial performance with robust revenue growth and profitability. While high leverage is a concern, the company's impressive return on equity and strong cash flow generation help mitigate risks. Overall, the financial health is solid, supporting future growth prospects.

Income Statement

Lovisa Holdings Ltd. has demonstrated strong revenue growth with a notable increase of approximately 17.1% in the latest year. The gross profit margin remains robust at 81.0%, and the net profit margin has improved to 11.8%, indicating efficient cost management. Additionally, the EBIT and EBITDA margins at 18.6% and 31.7%, respectively, reflect solid operating efficiency.

Balance Sheet

The company's debt-to-equity ratio is high, indicative of significant leverage, which poses potential risk. However, the return on equity is impressive at 102.7%, signifying excellent profitability relative to shareholder investment. The equity ratio of 15.1% suggests a relatively low reliance on equity financing.

Cash Flow

Free cash flow has grown substantially, reflecting strong cash generation capability. The operating cash flow to net income ratio is healthy, suggesting robust cash conversion. The free cash flow to net income ratio indicates strong cash flow relative to earnings, supporting the company's financial flexibility.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	698.66M	596.46M	458.71M	288.03M	242.18M
Gross Profit	565.79M	476.71M	361.83M	220.96M	187.27M
EBITDA	221.55M	180.19M	142.73M	97.70M	76.36M
Net Income	82.41M	68.16M	58.39M	24.83M	11.22M
Balance Sheet
Total Assets	532.80M	525.31M	373.52M	298.26M	260.13M
Cash, Cash Equivalents and Short-Term Investments	30.52M	31.65M	34.15M	35.55M	20.43M
Total Debt	359.07M	372.59M	228.37M	200.69M	167.15M
Total Liabilities	452.51M	445.32M	309.20M	252.55M	201.76M
Stockholders Equity	80.29M	79.99M	64.32M	45.72M	58.37M
Cash Flow
Free Cash Flow	148.91M	64.30M	93.18M	69.96M	52.84M
Operating Cash Flow	187.51M	141.16M	130.56M	85.30M	80.00M
Investing Cash Flow	-23.27M	-60.72M	-34.60M	2.26M	-25.56M
Financing Cash Flow	-165.16M	-83.61M	-97.47M	-73.08M	-43.67M

Lovisa Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 32.75 is above the 20-day moving average (MA) of 31.13, above the 50-day MA of 30.28, and above the 200-day MA of 28.53, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LOV.

Lovisa Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNI	73 Outperform	AU$614.53M	24.78	16.47%	5.49%	14.03%	-7.57%
PMV	72 Outperform	AU$3.20B	16.29	14.01%	7.00%	-27.48%	-27.96%
AX1	72 Outperform	AU$898.47M	13.13	14.35%	7.36%	6.29%	-12.42%
LOV	69 Neutral	€3.57B	41.99	82.71%	3.05%	11.86%	14.62%
Sector *	56 Neutral	HK$25.22B	4.10	-2.03%	6.15%	-0.31%	-67.64%
30M	―	€607.81M	19.64	8.55%	15.87%	―	―
MHJ	50 Neutral	AU$148.16M	153.85	0.53%	13.29%	2.15%	-92.33%

Lovisa Holdings Ltd. Corporate Events

Lovisa Holdings to Announce FY25 Results on August 27

Lovisa Holdings Limited has announced the release date for its financial year 2025 results, scheduled for August 27, 2025. The results will be presented by the CEO and CFO via a webcast, with an archive available on the company’s website, reflecting the company’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$31.20 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Lovisa Holdings Ltd.

Lovisa Holdings Ltd. has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of June 27, 2025. This change in substantial holding may impact the company’s shareholder structure and influence its market positioning, though specific implications for stakeholders are not detailed in the release.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$31.20 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Pinnacle Increases Stake in Lovisa Holdings

Lovisa Holdings Ltd. has announced a change in the substantial holding of its voting shares by Pinnacle Investment Management Group Limited. Pinnacle’s voting power in Lovisa Holdings has increased from 6.11% to 7.11%, indicating a significant rise in their stake in the company. This change could potentially impact Lovisa Holdings’ market dynamics and influence stakeholder interests.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$29.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Lovisa Holdings Announces Leadership Changes to Drive Global Growth

Lovisa Holdings Limited announced the commencement of John Cheston as the new Global CEO and Managing Director, effective June 4, 2025, marking a leadership transition from Victor Herrero. Additionally, Mark McInnes has been appointed as Executive Deputy Chairman, bringing extensive retail experience to support Lovisa’s next stage of global growth. These leadership changes are expected to strengthen Lovisa’s industry position and drive long-term shareholder value.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$29.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

Lovisa Holdings Welcomes State Street as Substantial Holder

Lovisa Holdings Ltd. has announced a significant change in its shareholder structure, with State Street Corporation and its subsidiaries becoming substantial holders in the company as of May 22, 2025. This development may impact Lovisa’s market positioning and stakeholder dynamics, as State Street’s involvement could influence voting power and strategic decisions within the company.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$29.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Lovisa Holdings

Lovisa Holdings Ltd. has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of May 12, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence future voting outcomes, potentially affecting Lovisa Holdings’ strategic decisions and market positioning.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$29.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

State Street Becomes Substantial Holder in Lovisa Holdings

Lovisa Holdings Ltd. has announced that State Street Bank and Trust Company has become a substantial holder in the company, indicating a significant investment and interest in Lovisa’s operations. This development could impact Lovisa’s market positioning by potentially increasing investor confidence and influencing voting power within the company.

State Street Corporation Becomes Substantial Holder in Lovisa Holdings

Lovisa Holdings Ltd. has announced a significant change in its substantial holders, with State Street Corporation and its subsidiaries becoming a substantial holder as of April 21, 2025. This development indicates a shift in the voting power dynamics within the company, potentially impacting its strategic decisions and stakeholder interests.