Lovisa (LOV) H2 2024 earnings summary

Executive summary

• FY2024 delivered strong results with revenue up 17.1% to $699m, 128 new stores opened, and presence expanded to 900 stores across 46 markets, including first entries into China, Vietnam, and Ireland, despite a 2% decline in comparable store sales that improved in the second half.

• EBIT rose 21.2% to $128.2m and NPAT increased 20.9% to $82.4m, supporting a final dividend of 37 cents per share.

• Operating cash flow increased 27.6% to $240m, supporting dividend growth and ongoing investment.

Financial highlights

• Revenue reached $699m, up 17.1% year-over-year; gross profit rose 18.7% to $565.8m with gross margin improving by 110bps to 81.0%.

• EBITDA increased 24.2% to $223.5m; EBIT up 21.2% to $128.2m; NPAT up 20.9% to $82.4m.

• EPS increased by 12.1 cents to 75.4 cents; full year dividends totaled 87 cents, up 26% from FY23.

• Operating cash flow before interest and tax reached $240m, up 27.6% from FY23.

• Net debt at year-end was $23.5m, down $10m from June 2023, with $120m in available cash and debt facilities.

Outlook and guidance

• First eight weeks of FY2025 saw comparable store sales up 2% and total sales up 12.7% year-over-year, with 10 new stores opened and two closures.

• Continued focus on global expansion, both physical and digital, with a strong balance sheet to support growth.

• No specific guidance on gross margin or store rollout numbers, but management aims to match or exceed prior years' store openings.