What’s going on here?
Fashion jewelry retailer Lovisa Holdings shed 12% from its share price after revealing slower same-store sales growth and a more cautious outlook, leading analysts to lower their earnings forecasts.
What does this mean?
At its annual meeting, Lovisa reported that comparable-store sales growth slipped from 5.6% early in fiscal 2026 to just 2% in the latest quarter. That slowdown pushed Jefferies to cut its profit estimates for Lovisa, trimming expected earnings per share by 8% for fiscal 2026 and by 2% for the two years after. The market wasted no time reacting, with Lovisa shares quickly sliding 12%—a move Jefferies called “harsh” but understandable given softer numbers. Even so, analysts noted Lovisa’s expansion playbook could see its 1,075-store network grow to over 3,000 globally, keeping the longer-term story alive. Jefferies stuck with a neutral view but nudged its price target down, from AU$37 to AU$33.40.
Why should I care?
For markets: Momentum can shift in a flash.
Lovisa’s sudden share dip highlights how quickly market sentiment can turn when retailers report weaker growth. After the 12% drop, shares rebounded 3% the next day, underlining how investors are watching every move in global expansion stories. To keep their support, companies like Lovisa need to deliver consistent results as they grow.
The bigger picture: Growth is more than just new stores.
Lovisa’s broader success depends on more than just opening locations—it needs to turn new shops into profitable ones, particularly as consumers worldwide keep a close eye on spending. While analysts think global reach could triple, the company’s long-term performance will rely on standing out in a crowded market and proving it can convert expansion into real returns.
