Fund Manager Summary
The fund managers believe that the outlook for Lovisa Holdings Ltd remains promising despite recent challenges. They note an 18% decline in share price, which has affected their overall returns, yet they express enthusiasm for the long-term potential of the business. In their opinion, as shares continue to de-rate, the opportunity to invest at more attractive valuations increases. While they are currently focused on other attractively-priced investments, they acknowledge that Lovisa is moving in the right direction. The fund managers anticipate that the current volatile market may soon provide a favorable setup for adding to their holdings, reinforcing their positive sentiment towards the company.
Source: Trading View
Commentary From The Managers
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Maple-Brown Abbott
17 Oct 2025
$37.67
Summary
- Maple-Brown Abbott expresses caution regarding Lovisa Holdings Ltd.
- Lovisa has been popular in the small cap retail sector, but caution is advised.
- The store format is effective, with global appeal and high returns.
- Concerns include the departure of a key CEO who was pivotal to growth.
- A new management team is seen as unproven.
- Increased competition in Australia and Asia is affecting store rollout speed.
- Lovisa's recent launch of a new format, Jewels, raises questions about management focus and capital allocation.
- Concerns that the core business may have limited growth potential.
- Lovisa trades at over 40 times earnings, significantly higher than most retailers.
- Maple-Brown Abbott suggests there may be better investment opportunities in retail.
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Commentary From The Managers
Maple-Brown Abbott
17 Oct 2025
$37.67
- Maple-Brown Abbott expresses caution regarding Lovisa Holdings Ltd.
- Lovisa has been popular in the small cap retail sector, but caution is advised.
- The store format is effective, with global appeal and high returns.
- Concerns include the departure of a key CEO who was pivotal to growth.
- A new management team is seen as unproven.
- Increased competition in Australia and Asia is affecting store rollout speed.
- Lovisa's recent launch of a new format, Jewels, raises questions about management focus and capital allocation.
- Concerns that the core business may have limited growth potential.
- Lovisa trades at over 40 times earnings, significantly higher than most retailers.
- Maple-Brown Abbott suggests there may be better investment opportunities in retail.
Summary
QVG Capital
30 Sept 2025
$37.39
- Lovisa experienced a decline of nearly -13% in September, reversing much of its previous gains.
- The expected acquisition of Claires stores has become less likely, impacting growth prospects.
- New store openings are currently below the necessary rate to meet market expectations.
- QVG Capital notes that the performance of Lovisa's small cap can be inconsistent, with store openings occurring in uneven intervals.
- The excitement following Lovisa's results has diminished due to reduced prospects for leasing opportunities in the US and UK.
Summary
ECP Asset Management
30 Sept 2025
$37.39
- Lovisa (LOV) experienced a negative contribution this month, retracing part of last month’s strong gains post FY25 results.
- Sales and gross profit exceeded expectations, but higher operating costs impacted NPAT.
- The rollout of stores continues at pace, with 1,031 stores currently open and over 130 more planned for this year.
- Growth is underpinned by strong performance in Europe and improving momentum in the US.
- Near-term cost growth is attributed to investments in new stores and refurbishments.
- Despite costs, gross margins remain resilient.
- The multi-year global expansion runway supports confidence in the outlook.
Summary
Wilson Asset Management
31 Aug 2025
$42.12
- Lovisa Holdings is an international specialist fast fashion and jewellery retailer with over 1,000 stores in 50 countries.
- For FY2025, the company reported a 14.2% revenue growth to $798.1 million and a 4.8% increase in net profit after tax to $86.3 million.
- Gross margins improved to 82.0%.
- Store expansion was a key driver of revenue growth, with 162 new store openings, including in new markets such as Africa and the Americas.
- Early FY2026 trading indicated a 5.6% increase in comparable sales, suggesting positive momentum.
- Recently appointed CEO John Cheston is well positioned to drive an acceleration in global store rollout.
- Wilson Asset Management continues to hold because of the strong retail executive team backing Lovisa.
Summary
Contact Asset Management
31 Aug 2025
$42.12
- Contact Asset Management continues to hold Lovisa (LOV) as a top investment choice.
- Lovisa delivered a notable result with strong performance metrics.
- The rollout of LOV stores has materially accelerated since the first half of FY24.
- Same-store sales grew by 5.6%.
- Forecasts indicate top-line growth in the mid-20% range.
- Investors benefited from LOV's share price increasing by more than 25% during the month.
Summary
QVG Capital
31 Aug 2025
$42.12
- Lovisa has shown strong revenue growth rates of 28%.
- Operating leverage is expected to improve heading into FY26.
- The incoming CEO emphasized a "focus, focus, focus" strategy.
- This strategy suggests a back to basics approach to individual store and market economics.
- QVG Capital anticipates that this focus will not hinder the increasing pace of store rollout.
Summary
ECP Asset Management
31 Aug 2025
$42.12
- Lovisa (LOV) showed strong performance this month following a positive FY25 result and trading update.
- Sales increased with comparable store sales turning positive in the second half of the year.
- Gross margin expanded, contributing to healthy EBIT and NPAT growth despite rising lease and interest costs.
- Accelerated store rollout with 162 net openings, bringing the total to 1,031 stores across over 50 markets.
- Strength in European markets and renewed momentum in the US and Canada.
- CEO transition to John Cheston is complete, with Mark McInnes appointed as Executive Deputy Chair.
- Execution is improving in core Western markets.
- ECP Asset Management remains confident in Lovisa’s global growth potential.
Summary
ECP Asset Management
30 June 2025
$31.68
- Lovisa Holdings (LOV) was a notable positive contributor this month.
- Driven by positive investor sentiment surrounding the milestone achievement of opening its 1,000th store globally, one month ahead of consensus expectations.
- The strategic appointment of Mark McInnes as Executive Deputy Chairman and John Cheston as CEO bolstered market confidence.
- Promising a renewed focus on same-store sales growth and disciplined store expansion.
- Lovisa's robust international rollout strategy and proven store economics continue to underpin its potential for sustained global growth and category leadership.
Summary
Ellerston Capital
30 May 2025
$29.35
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Ausbil Investment Management
30 May 2025
$29.35
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Monash Investors
31 Mar 2025
$24.00
- Monash Investors experienced an 18% decline in Lovisa, resulting in a 0.8% cost to the fund.
- Lovisa continues to de-rate, prompting ongoing monitoring of its performance.
- Despite the decline, Monash Investors remains enthused about the long-term potential of Lovisa.
- At current share prices, there is increasing interest in Lovisa as its shares fall further.
- There are a range of attractively-priced good businesses available, which limits immediate top-up opportunities in Lovisa.
- Monash Investors believes there will likely be an attractive set-up to add to their holding in the future amid market volatility.
Summary
Monash Investors
28 Feb 2025
$29.09
- Lovisa was flat for the month as its shares remained steady following a mixed half-year result.
- Currently, Lovisa shares have declined by 15% moving into March, resulting in a decline of over 30% from October highs.
- The company highlights how Monash Investors manages position sizing in response to changing share prices.
- Lovisa is seen as a fundamentally strong company, showcasing a successful growth model with revenues increasing at an average annual rate of 20% over the past decade.
- Unique fashion jewellery & accessory concept underpins its global roll-out, now with over 940 stores in 50 countries.
- Remarkably, growth has been internally funded with minimal changes to shares outstanding, allowing for significant dividends to shareholders.
- Despite Lovisa being perceived as full based on P/E metrics, the market has possibly underappreciated the benefits of high growth without the need for additional equity.
- Store roll-out has slowed considerably, impacting growth expectations.
- There is potential for 200-300% store growth ahead, but annual new store growth has halved from ~20% to ~10%.
- Challenges in the US market include restricted servicing capacity and difficulties in signing new lease agreements.
- A new US distribution centre opened, poised to increase the number of North American stores.
- Globally, growth has been strategic, paving the way for potential accelerated expansion when conditions improve.
- Concerns persist as same-store sales flatlined and competition increases in the fashion jewellery sector.
- Monash Investors recognizes the importance of assessing positives and negatives continuously.
- Shares have significantly appreciated over the long-term, highlighting a 1000% increase over the past decade, yielding a 40% dividend yield.
- Current position in Lovisa is at ~4% of the Fund, reflecting a balanced approach amid market volatility.
- Monash Investors remains long-term bullish and is prepared to act when market conditions are favorable.
- Encouragement for investors to maintain a broader perspective during uncertain market environments.
Summary
QVG Capital
31 Jan 2025
$29.09
- Lovisa presents a mixed outlook with both bullish and bearish arguments.
- Bear thesis factors include a premium rating, low single-digit same store sales, slowing new store rollouts, CEO transition, and domestic competition concerns.
- QVG Capital has a long-standing commitment to Lovisa despite being occasional consumers of the product.
- High returns on capital are appealing, though there are suggestions that store formats may need a refresh.
- Store rollout potential is believed to remain strong, despite current challenges.
- Brett Blundy's role as a 40% shareholder and retail expert adds stability and confidence to the investment thesis.
Summary
ECP Asset Management
31 Dec 2024
$30.16
- ECP Asset Management notes that Lovisa Holdings Ltd (LOV) contributed positively this month, driven by ongoing global expansion.
- The focus on profitable growth remains a key aspect of their strategy.
- The AGM trading update reported comp sales growth of +1.0% for the first 20 weeks of FY25, showcasing resilience in a softer global consumer environment.
- Lovisa added 27 net new stores, with significant progress in Europe and a new franchise region established in Panama.
- Despite a challenging leasing environment in some regions, LOV's disciplined store rollout and strong operational focus position it well to navigate near-term headwinds.
Summary
Monash Investors
30 Sept 2024
$36.00
- Lovisa is emerging as a global leader among Australian specialty retailers.
- Recent reporting was generally positive but fell short of heightened expectations, leading to a share price drop of over 15%.
- Investor concerns stem from a lower-than-expected number of new store openings.
- Long-term investors should recognize that Lovisa's expansion is not linear and will have fluctuations.
- The company is selective in choosing store locations and remains patient in its approach.
- Investors have reacted positively since the reporting, with a recovery in share price.
- Lovisa has been a strong contributor to the Monash Fund's performance.
- Monash Investors has modestly reduced their exposure due to the stock reaching fuller values.
- Lovisa continues to be a top holding, positioned for long-term growth and opportunistic re-entry.
Summary
Contract Asset Management
30 Sept 2024
$36.00
- Contract Asset Management added Lovisa Holdings (LOV) to the portfolio in early September.
- Lovisa is a fast-growing retailer specializing in affordable fashion jewellery.
- The company has a significant presence in Australia and is expanding internationally.
- Founded in 2010 by Brett Blundy, who remains the major shareholder with a 40% stake.
- Blundy is the driving force behind LOV’s strategy and expansion.
- The investment position was established following a negative share price reaction to the company’s FY2024 result.
- Results showed double-digit increases in sales and earnings, aligning with market forecasts.
- Some investors were disappointed with same store sales growth.
- Contract Asset Management takes a longer-term view, optimistic about LOV’s ambitious global expansion plans.
- Lovisa has shown consistent revenue and earnings growth, even in challenging retail environments.
- The brand has a strong retail presence in multiple countries, benefiting from being a global player in affordable fashion jewellery.
- With an experienced and aligned founder, Contract Asset Management anticipates solid growth for LOV.
Summary
Oracle Advisory Group
30 Sept 2024
$36.00
- Oracle Advisory Group trimmed their position in Lovisa Holdings by -1.2% prior to the earnings release.
- Concerns arose regarding the company’s valuation, perceived to be ahead of market expectations.
- Share price increased by 110% since late 2023 before the FY24 results.
- Market anticipated a rapid continuation of store rollouts.
- CEO’s resignation reduced the incentive to pursue aggressive expansion.
- The accurate prediction was validated by the share price decline on results day.
- Despite the sell-off, Lovisa’s value has increased by 70% since October 2023.
- Lolvisa remains a top holding and a high-conviction position for Oracle Advisory Group.
Summary
QVG Capital
31 Aug 2024
$32.05
- Lovisa experienced mid-single digit downgrades to FY25 earnings due to a soft start to July and August trading.
- The stock declined over 10% for the month, reflecting market reactions to the earnings downgrade.
- Despite the recent challenges, QVG Capital remains bullish on Lovisa.
- The store economics and global roll out potential are still intact, supporting the long-term investment thesis.
Summary
Glennon Small Companies
31 Aug 2024
$32.05
- Lovisa Holdings Ltd experienced a performance decline of -11%.
- The decline was influenced by a dispute involving Solomon Lew and Brett Blundy.
- Premier Investments announced the termination of John Cheston due to misconduct.
- Cheston had resigned to take the CEO position at Lovisa.
- Lovisa has not yet commented on the allegations surrounding Cheston.
- Glennon Small Companies continues to hold their position in Lovisa Holdings Ltd as they await further developments.
Summary
Oracle Advisory Group
30 June 2024
$31.90
- Oracle Advisory Group trimmed Lovisa Holdings position by -0.5%
- The decision was made to reduce risk as it had become one of the largest positions in the portfolio
- Despite the trim, Lovisa remains one of their top positions
- Oracle Advisory Group holds a positive view on Lovisa's future
Summary
Monash Investors
31 May 2024
$33.91
- Monash Investors continues to hold Lovisa Holdings Ltd (ASX: LOV) due to its impressive growth in revenue.
- Lovisa has demonstrated a successful global store roll out program.
- The company is delivering commensurate profits despite challenging retail conditions.
- It reflects Lovisa’s resilience and adaptability in the market.
Summary
Oracle Advisory Group
31 Mar 2024
$32.16
- Oracle Advisory Group has observed significant growth potential in Lovisa Holdings Ltd.
- Lovisa is emerging as a leading discretionary retailer on the ASX.
- There is a belief that Lovisa can expand to over 2,000 stores globally, far exceeding the current 854 stores.
- Oracle Advisory Group capitalized on the share price dip below $19 in October 2023 to increase their investment.
- This strategic position has proven beneficial with shares now trading over $31.
Summary
Ausbil Investment Management
28 Feb 2024
$31.78
- Ausbil notes Lovisa (LOV) surged +40.9% over the month.
- A solid earnings result and positive sales update for early trading in 2H24 have refocused attention.
- Global store rollout opportunity is seen as material, particularly in existing markets such as the US.
- An experienced management team is exploring new geographies.
- Despite volatility, LOV's share price has increased +88% since its October lows.
- Ausbil continues to hold because opportunities exist beyond short-term noise.
Summary
Monash Investors
28 Feb 2024
$31.78
- Lovisa (ASX: LOV) continues to perform strongly with a 10% increase in share price on reporting day.
- The stock has seen an overall 40% rise in the past month.
- Lovisa is a vertically integrated retailer specializing in lower-priced jewelry.
- The company is expanding its global store footprint, particularly in North America.
- Recently, Lovisa has entered the Chinese market.
- Market enthusiasm has been fueled by improvements in like-for-like sales in the first seven weeks after December 31.
- Monash Investors continues to hold because of Lovisa's promising growth trajectory.
Summary
Ausbil Investment Management
31 Jan 2024
$23.02
- Lovisa (LOV) fell -5.9% over the month
- Context of a 3-month return of +32.9%
- Ausbil's assessment remains unchanged since December
- Belief in LOV being in the first innings of a global store rollout
- Led by experienced CEO Victor Herrero
- Supported by best-in-class gross margins
- Compact store model and fast-fashion jewellery catalogue appeal to global consumers
Summary
Oracle Advisory Group
31 Dec 2023
$24.40
- Oracle Advisory Group added to Lovisa’s position following the FY23 result and a recent pullback in share price.
- Lovisa was the top performer for the quarter and is considered one of the best discretionary retailers on the ASX.
- The investment was increased as the share price fell below fair value estimates.
- Positive outlook continues with a fast start to FY24.
- Lovisa operates 836 stores globally and has significant growth potential.
- The company's biggest opportunity lies in the US market, with potential to open over 1,500 stores based on comparisons with competitor Claire’s.
- Lovisa has a competitive advantage with higher operating margins per store, despite lower retail prices.
- The company adopted a shotgun approach in expansion, opening 210 new stores in FY23 and closing 38 underperforming ones.
- Low start-up costs allow Lovisa to recover investments within the first year.
- The business model enables the closure of underperforming stores without significant capital loss.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"As Lovisa's shares retreat, the allure of its long-term potential grows stronger. While not yet a top pick, the downward trend may soon present a compelling buying opportunity in this volatile market landscape."
Last Updated: 17 Oct 2025
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Frequently Asked Questions
Who is investing in Lovisa Holdings Ltd (ASX:LOV)?
Fund managers including Monash Investors, Ausbil, Ellerston Capital, Oracle Advisory Group, Contract Asset Management, QVG Capital, ECP Asset Management, Glennon Small Companies, Contact Asset Management, Wilson Asset Management and Maple-Brown Abbott have invested in Lovisa Holdings Ltd (ASX:LOV).
Why do fund managers invest in Lovisa Holdings Ltd?
Fund managers are interested in Lovisa Holdings Ltd due to its long-term growth potential, despite recent share price declines. They view the current lower valuation as an opportunity for future investment, indicating that they believe the company is moving in a favorable direction. While not prioritizing immediate investment, they anticipate a favorable setup for adding to their holdings as market conditions evolve.
What happened to Lovisa Holdings Ltd (ASX:LOV)?
Fund managers are investing in Lovisa Holdings Ltd due to its robust growth trajectory, evidenced by a 14.2% revenue increase and a 5.6% rise in same-store sales. The company is aggressively expanding its store footprint, with 162 new openings across 50+ markets, contributing to mid-20% top-line growth. The recent appointment of CEO John Cheston is seen as a positive shift, enhancing execution in core markets. Despite some caution regarding competition and management changes, the overall sentiment remains optimistic about Lovisa's global growth potential and strong financial performance.