Lovisa (ASX: LOV) has delivered another strong financial performance in the first half of FY25, continuing its growth trajectory despite economic headwinds. Revenue rose 8.8% year-over-year to $405.9 million, largely driven by the company’s expanding global store network. Comparable store sales edged up 0.1%, while EBIT increased 10.7% to $90.2 million. Net profit after tax (NPAT) grew 6.5% to $56.9 million, demonstrating the company’s ability to scale profitably.
Gross margin remained a standout, improving 170 basis points to 82.4%, reflecting Lovisa’s ongoing focus on pricing discipline and promotional efficiency. The company’s cash flow performance was also strong, with $141.1 million in operating cash flow before interest and tax, allowing Lovisa to end the period with a net cash position of $6.7 million. This financial strength has enabled the Board to declare an unfranked interim dividend of 50.0 cents per share, maintaining last year’s payout.
Store expansion remained a key driver of growth, with Lovisa opening 57 new locations during the half, bringing its total store count to 943 worldwide. The company continues to invest in its global footprint, team structures, and technology to support future expansion. While increased costs—including inflationary pressures and a growing presence in higher-cost markets—impacted expenses, this was partially offset by a reduction in CEO long-term incentive expenses compared to the prior period.
Looking ahead, Lovisa remains focused on executing its global growth strategy while maintaining strong margins and disciplined financial management. CEO Victor Herrero expressed confidence in the company’s trajectory, crediting Lovisa’s team and strategic initiatives for its sustained performance. The Board will continue to assess dividend levels each half-year based on profitability, cash flows, and capital expenditure needs, ensuring the company remains well-positioned for long-term growth.
