Half Year 2026 Lovisa Holdings Ltd Earnings Call Transcript
Key Points
- Lovisa Holdings Ltd (ASX:LOV) achieved a milestone with sales exceeding half a billion dollars for the first time.
- The company opened 85 new stores in the first half of FY26, expanding its network to 1,095 stores.
- Underlying total sales increased by 22.7% for the half year, with a gross margin of 82.9%, up 50 basis points from the prior year.
- Strong growth was observed in the European and Americas markets, contributing significantly to new store growth.
- The company announced an increased interim dividend of 53 cents per share, reflecting strong cash flow and profitability.
- Comparable store sales growth was modest at 2.2%, indicating potential challenges in driving same-store sales.
- Higher interest expenses and depreciation on store leases impacted profitability due to the rapid store expansion.
- The Jules brand, a strategic startup, incurred losses, raising concerns about its impact on overall financial performance.
- The Americas region faced challenges with weather conditions affecting sales, particularly during the holiday trading period.
- The company is facing competitive pressures in various markets, including the Americas and Australia, which could impact future growth.
Thank you for standing by and welcome to the Lovisa Holdings Limited FY26 half-year results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions)
I would now like to hand the conference over to Mr. Cheston, Global CEO. Please go ahead.
Thank you. Good morning, everyone, and thank you for taking the time. At today, you have our Executive Deputy Chairman, Mark McGinnis; our Group CFO, Chris Lauder; and myself, John Cheston, Global CEO. As you are aware, this morning we published our half-year results to the ASX, and we would like to talk you through them now. I'll do a page turn through the highlights of the presentation, and we'll then have to take questions at the end.
If we first of all turn to page 3, we will talk through some of the highlights of the year. I'm pleased today to present a strong result for the first half of FY26, a true milestone for
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