Lovisa Holdings shares surge 19% following strong annual results

Lovisa Holdings Ltd reported strong full-year financial results, leading to a 19% surge in its ASX stock price. The jewellery retailer saw total revenue increase by 17.6% to $938.8 million, while net profit after tax rose 10.7% to $95.6 million.

Growth was primarily driven by significant performance in the Americas and Europe, where sales surged by 29.6% and 29.5%, respectively. The company expanded its global footprint by opening 160 new stores, bringing its total to 1,136 locations across more than 50 markets. To optimize profitability, Lovisa closed 43 underperforming locations.

In addition to revenue growth, the company reported a 20.9% jump in EBITDA and an 11.7% increase in its full-year dividend to 86 cents per share. Management indicated that recent investments in technology and supply chains were fully funded by existing cash flows.