Lovisa Holdings Limited (ASX:LOV)

Lovisa Holdings Limited's 1H FY26 Half Year Results Presentation highlights significant growth and expansion for the company. Total sales increased by 23.3% compared to the previous half year, driven by an expanding store network, with underlying total sales up 22.7%. Global comparable store sales rose by 2.2%, and the company achieved a strong underlying gross margin of 82.9%, up by 50 basis points. Lovisa continued to invest in global business expansion and maintained a focus on strong gross margin performance to offset the ongoing investment in the cost of doing business (CODB). Reported EBIT increased by 8.9% to $98.3 million, and NPAT rose by 2.6% to $58.4 million. The underlying EBIT was up 20.4% to $109.1 million, and underlying NPAT grew by 21.5% to $69.6 million. The company added 85 new stores, resulting in a total of 1,095 stores by the end of the half year. Cash flow from operations was robust at $183.8 million, a 30.3% increase, which supported an interim dividend of 53 cents per share, 50% franked. The presentation also noted a strong start to the second half of FY26, with total sales in the first seven weeks increasing by 21.5% and comparable store sales up by 1.6%.