Lovisa Holdings Ltd. (LOV) AI Stock Analysis

• Market Cap: AU$3.42B
• Dividend Yield: 3.24%
• Average Volume (3M): 265.64K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 1.65
• Revenue Growth: 11.86%
• EPS Growth: 14.62%
• Country: AU
• Employees: 8,000
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Luxury Goods
• EPS (TTM): 0.52
• Shares Outstanding: 110,715,590
• 10 Day Avg. Volume: 416,811
• 30 Day Avg. Volume: 265,645
• PEG Ratio: 1.83
• Price to Book (P/B): 26.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.35
• 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$28.93
• Price Target Upside: -5.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: AU$35.00 ▲(14.57%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 Ltd. (LOV) is a leading global retailer specializing in fashion jewelry and accessories. Established in 2010, the company operates a network of stores across various international markets, offering a diverse range of affordable, on-trend jewelry products. Lovisa's core product offerings include earrings, necklaces, bracelets, rings, body jewelry, and hair accessories, catering primarily to fashion-conscious consumers.

How the Company Makes Money

Lovisa Holdings Ltd. generates revenue primarily through the sale of fashion jewelry and accessories via its extensive retail network, which includes both physical storefronts and online platforms. The company's key revenue streams involve direct sales to consumers in its global stores, as well as e-commerce transactions through its website. Lovisa focuses on maintaining a high turnover of inventory by frequently updating its product lines to align with current fashion trends, thus encouraging repeat customer visits and purchases. Additionally, the company leverages economies of scale through strategic sourcing and efficient supply chain management to optimize its cost structure. Significant factors contributing to Lovisa's earnings include its ability to rapidly expand into new markets and its strategic placement of stores in high-footfall locations.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	731.57M	698.66M	596.46M	458.71M	288.03M	242.18M
Gross Profit	447.96M	565.79M	476.71M	361.83M	220.96M	187.27M
EBITDA	202.54M	221.55M	180.19M	142.73M	97.70M	76.36M
Net Income	85.87M	82.41M	68.16M	58.39M	24.83M	11.22M
Balance Sheet
Total Assets	599.49M	532.80M	525.31M	373.52M	298.26M	260.13M
Cash, Cash Equivalents and Short-Term Investments	54.71M	30.52M	31.65M	34.15M	35.55M	20.43M
Total Debt	391.57M	359.07M	372.59M	228.37M	200.69M	167.15M
Total Liabilities	495.03M	452.51M	445.32M	309.20M	252.55M	201.76M
Stockholders Equity	104.45M	80.29M	79.99M	64.32M	45.72M	58.37M
Cash Flow
Free Cash Flow	142.31M	148.91M	64.30M	93.18M	69.96M	52.84M
Operating Cash Flow	177.22M	187.51M	141.16M	130.56M	85.30M	80.00M
Investing Cash Flow	-26.05M	-23.27M	-60.72M	-34.60M	2.26M	-25.56M
Financing Cash Flow	-157.34M	-165.16M	-83.61M	-97.47M	-73.08M	-43.67M

Lovisa Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 30.55 is below the 20-day moving average (MA) of 31.15, above the 50-day MA of 28.24, and above the 200-day MA of 28.62, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 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
UNI	72 Outperform	AU$563.90M	22.63	16.47%	5.99%	14.03%	-7.57%
PMV	71 Outperform	AU$3.14B	15.83	14.01%	7.14%	-27.48%	-27.96%
LOV	69 Neutral	AU$3.42B	39.61	82.71%	3.24%	11.86%	14.62%
Sector *	67 Neutral	¥247.19B	12.85	6.57%	2.82%	5.08%	-11.28%
AX1	66 Neutral	AU$817.34M	11.91	14.35%	8.09%	6.29%	-12.42%
MYR	53 Neutral	AU$1.04B	21.51	8.55%	16.67%	-2.43%	-49.64%
MHJ	50 Neutral	AU$153.93M	157.69	0.53%	13.29%	2.15%	-92.33%

Lovisa Holdings Ltd. Corporate Events

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.

Hyperion Increases Stake in Lovisa Holdings

Lovisa Holdings Ltd., a company in the fashion accessories industry, has experienced a change in the substantial holding of its voting shares. Hyperion Asset Management Limited, a significant shareholder, increased its voting power from 5.28% to 6.28% as of April 3, 2025. This change reflects a growing interest and confidence in Lovisa Holdings by Hyperion, potentially impacting the company’s market position and signaling positive stakeholder engagement.