Lovisa Holdings (ASX:LOV) Operating Income: A$150.3 Mil (TTM As of Dec. 2025)

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ASX:LOV Lovisa Holdings Ltd ASX:LOV
93 GF Score
Price A$22.59
GF Value A$39.59
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Lovisa Holdings Operating Income?

Lovisa Holdings ASX:LOV -0.04% 93 Operating Income is A$150.3 Mil as of Dec. 2025. GuruFocus rates ASX:LOV with a GF Score™ of 93/100 and a GF Value™ of A$39.59 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Lovisa Holdings's Operating Income for the six months ended in Dec. 2025 was A$101.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$150.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lovisa Holdings's Operating Income for the six months ended in Dec. 2025 was A$101.0 Mil. Lovisa Holdings's Revenue for the six months ended in Dec. 2025 was A$500.7 Mil. Therefore, Lovisa Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was 20.17%.

Good Sign:

Lovisa Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

Lovisa Holdings's 5-Year average Growth Rate for Operating Margin % was 6.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lovisa Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was 20.62%. Lovisa Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 37.77%.


Lovisa Holdings  (ASX:LOV) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lovisa Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=201.952 * ( 1 - 31.99% )/( (654.378 + 677.703)/ 2 )
=137.3475552/666.0405
=20.62 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=698.433 - 78.813 - ( 42.633 - max(0, 189.022 - 154.264+42.633))
=654.378

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=737.934 - 96.147 - ( 70.477 - max(0, 219.083 - 183.167+70.477))
=677.703

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Lovisa Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=196.952/( ( (516.889 + max(-9.011, 0)) + (526.101 + max(-19.141, 0)) )/ 2 )
=196.952/( ( 516.889 + 526.101 )/ 2 )
=196.952/521.495
=37.77 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.461 + 81.137 + 13.544) - (78.813 + 12.571 + 14.769)
=-9.011

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(23.801 + 86.828 + 2.061) - (96.147 + 19.732 + 15.952)
=-19.141

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Lovisa Holdings's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=100.976/500.651
=20.17 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Lovisa Holdings Operating Income Related Terms


Lovisa Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Lovisa Holdings's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lovisa Holdings Operating Income Chart

Lovisa Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.32 82.39 106.29 129.97 140.26

Lovisa Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.57 46.40 90.94 49.32 100.98
ASX:LOV
93GF Score
Lovisa Holdings Ltd ASX:LOV
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Lovisa Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$150.3 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$150.3 Mil mean?
Lovisa Holdings (ASX:LOV) has a Operating Income of A$150.3 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Lovisa Holdings and its competitors.
Is Lovisa Holdings' Operating Income too high?
Lovisa Holdings' current Operating Income is A$150.3 Mil. Overall, Lovisa Holdings has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lovisa Holdings' Operating Income compare to CASY and WSM?
Lovisa Holdings' Operating Income of A$150.3 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Lovisa Holdings and its competitors. Lovisa Holdings's current Operating Income is A$150.3 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lovisa Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lovisa Holdings (ASX:LOV) is currently considered Significantly Undervalued. The stock's GF Value™ is A$39.59, compared to a current price of A$22.59 — trading 42.9% below its estimated fair value. The current Operating Income is A$150.3 Mil. Lovisa Holdings' overall GF Score™ is 93/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Lovisa Holdings (ASX:LOV), the current Operating Income is A$150.3 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Lovisa Holdings (ASX:LOV) Overvalued in 2026?

Based on GuruFocus' analysis, Lovisa Holdings stock appears to be undervalued. The current stock price of A$22.59 is trading 42.9% below its estimated GF Value™ of A$39.59. GuruFocus considers Lovisa Holdings to be Significantly Undervalued.

Key valuation signals for ASX:LOV:

  • Operating Income: A$150.3 Mil
  • GF Value™: A$39.59 vs. price of A$22.59 (42.9% below fair value)
  • GF Score™: 93/100 with 2 warning signs

No single metric tells the full story. See the ASX:LOV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lovisa Holdings Business Description

Other Exchanges LO7:Germany
Address 818-820 Glenferrie Road, Level 1, Hawthorn, Melbourne, VIC, AUS, 3122
Lovisa is a global fast-fashion retailer specializing in jewelry. A vertically integrated supply chain allows it to develop, source, and merchandise its exclusive products. Its target customer base is millennials seeking affordable and fashionable jewelry or receiving it as gifts. Lovisa's global network of own-operated and franchised stores span across more than 30 countries. Lovisa's sales growth record is largely underpinned by global store rollouts. The store format and offering is standardized globally, with stores typically in shopping centers and malls with relatively high foot traffic and sales per square meter. Lovisa also operates online stores and in-store piercing services in all its jurisdictions.
93GF Score

Get the complete analysis for ASX:LOV

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$22.59
Price
A$39.59
GF Value