Lovisa Holdings Ltd. (LOV) AI Stock Analysis

• Market Cap: AU$2.76B
• Dividend Yield: 2.57%
• Average Volume (3M): 183.68K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.46
• Revenue Growth: 14.24%
• EPS Growth: 3.58%
• Country: AU
• Employees: 8,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.63
• 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$31.08
• Price Target Upside: 25.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.67
• Revenue Forecast (FY): AU$945.46M

• Rating: 63 Neutral
• Price Target: AU$29.00 ▲(17.41% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily supported by strong profitability and cash-flow quality, but is held back by elevated balance-sheet leverage and weak technicals (price below all key moving averages with negative MACD). Valuation is also a headwind due to a high P/E despite a moderate dividend yield.

Positive Factors

High gross and net margins

Sustained high gross margin (82%) and healthy net margin (10.8%) signal durable product-level pricing power and efficient cost control. This margin profile supports reinvestment, cushions against demand swings and underpins long-term cash generation and profitability.

Strong cash generation

Operating cash flow materially exceeds reported earnings and free cash flow converts well to net income, indicating high cash quality. Reliable cash generation supports capex, dividends, and debt servicing, improving resilience across multi-quarter horizons.

Very high return on equity

An exceptionally high ROE indicates the business generates strong returns on shareholders' capital, reflecting operational efficiency or effective capital deployment. Sustained high ROE is a durable sign of management effectiveness in driving profitability.

Negative Factors

Very high leverage

Extremely elevated debt-to-equity (6.36) signals significant financial leverage that can constrain strategic flexibility. High leverage increases interest burden and refinancing risk, making the company more vulnerable to cost-of-capital moves or downturns over the medium term.

Muted EPS growth

EPS growth of roughly 1.65% is low relative to revenue expansion, suggesting per-share earnings gains are limited. Persistently weak EPS growth can reduce compounding returns to shareholders and may reflect structural pressures on per-share profits.

Store-reliant retail model

Heavy dependence on company-operated physical stores exposes the model to structural shifts in foot traffic, higher fixed costs and inventory/markdown risk. Even with online channels, large store footprints create operational leverage that can pressure margins in weaker retail periods.

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

Strong income statement performance (revenue growth and high gross margin) and healthy cash generation support a solid financial profile. However, the balance sheet is a key risk due to very high leverage (debt-to-equity 6.36), which tempers the overall financial score.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	892.86M	798.13M	698.66M	596.46M	458.71M	288.03M
Gross Profit	523.36M	654.67M	565.79M	476.71M	361.83M	220.96M
EBITDA	236.68M	176.59M	221.55M	180.19M	142.73M	97.70M
Net Income	87.79M	86.33M	82.41M	68.16M	58.39M	24.83M
Balance Sheet
Total Assets	737.93M	698.43M	532.80M	525.31M	373.52M	298.26M
Cash, Cash Equivalents and Short-Term Investments	70.48M	49.11M	30.52M	31.65M	34.15M	35.55M
Total Debt	816.72M	499.64M	359.07M	372.59M	228.37M	200.69M
Total Liabilities	629.89M	619.88M	452.51M	445.32M	309.20M	252.55M
Stockholders Equity	108.04M	78.55M	80.29M	79.99M	64.32M	45.72M
Cash Flow
Free Cash Flow	165.25M	146.88M	148.91M	64.30M	93.18M	69.96M
Operating Cash Flow	245.16M	207.91M	187.51M	141.16M	130.56M	85.30M
Investing Cash Flow	-69.74M	-55.17M	-23.27M	-60.72M	-34.60M	2.26M
Financing Cash Flow	-159.03M	-143.06M	-165.16M	-83.61M	-97.47M	-73.08M

Lovisa Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LOV, the sentiment is Negative. The current price of 24.7 is below the 20-day moving average (MA) of 29.43, below the 50-day MA of 29.66, and below the 200-day MA of 33.24, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 32.80 is Neutral, neither overbought nor oversold. The STOCH value of 10.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LOV.

Lovisa Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX1	72 Outperform	AU$498.82M	12.89	12.90%	7.33%	1.58%	-4.71%
LOV	63 Neutral	AU$2.76B	31.40	110.44%	2.57%	14.24%	3.58%
PMV	63 Neutral	AU$2.10B	12.79	10.29%	3.56%	-48.80%	-35.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
UNI	58 Neutral	AU$692.79M	17.22	15.62%	4.70%	15.51%	-32.98%
MHJ	54 Neutral	AU$159.71M	77.27	1.24%	―	-0.20%	―
MYR	42 Neutral	AU$621.99M	-2.18	-36.66%	6.38%	13.78%	-413.50%

Lovisa Holdings Ltd. Corporate Events

Lovisa Sets Date for FY26 Half-Year Results and Investor Webcast

Lovisa Holdings Limited has announced it will release its financial results for the half-year ended 28 December 2025 on 19 February 2026, with Global CEO John Cheston and Group CFO Chris Lauder to present the numbers via a webcast and Q&A session that morning. The scheduled results release and investor presentation underline the company’s ongoing engagement with the market and will provide shareholders and analysts with a key update on trading performance and strategic progress into the second half of FY26.

The most recent analyst rating on (AU:LOV) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Lovisa Holdings Ltd. stock, see the AU:LOV Stock Forecast page.

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.