Blundy backs UK brand as Lovisa faces Australian sales drop

Jewells operates seven locations, a figure that has stayed constant since FY25, as the annual filing indicated the chain had seven outlets open as of 30 June 2025.

Brett Blundy, chair of Lovisa, expressed support for the fledgling UK-based Jewells label, aiming for it to become a significant profit source while sales in the parent company’s domestic market declined.

UK expansion and home market struggles

Jewells operates seven locations, a figure that has stayed constant since FY25, as the annual filing indicated the chain had seven outlets open as of 30 June 2025. The brand’s performance has pressured the group’s profit. Addressing investors, Blundy said Jewells is making steady headway and that the venture is being handled with the same careful approach that originally built Lovisa. “It is too early to call it a success, but early enough that I wanted you to hear about it directly from me, and to know we consider it an important part of our next chapter and expect it to be a big contributor,” Blundy said.

In the first half of FY26, Jewells posted an EBIT deficit of $10.8 million. Lovisa omitted a full-year EBIT number, labeling the operation in its report as a seven-store pilot still in progress. The expansion of Jewells in Britain coincides with a downturn in Lovisa’s Australian segment. Revenue from Australia and New Zealand declined 5.7% to $193.4 million, versus $205 million in the prior year. Revenue generated solely in Australia slipped 5.5% to $170.3 million from $180.2 million, despite the store count rising from 182 to 185. Consequently, Australia’s share of total group sales fell to roughly 18% from nearly 23% a year earlier.

Regional performance and store rollout

The Asian market also experienced a decline. Sales in the region dropped 3.8% to $36.7 million as Lovisa reduced its Singapore presence from 16 locations to 12 and trimmed Malaysia from 42 to 38 stores. Growth for the company was driven by other overseas markets. Revenue in Europe surged 29.5% to $364.3 million, while the Americas increased 29.6% to $275.9 million. Overall group turnover rose 17.6% to $938.8 million. Comparable store sales across the group climbed 2% for the year, a figure Blundy said was below expectations.

UBS identified the discount jeweler Harli + Harpa, started by ex-Lovisa chief executive and co-founder Shane Fallscheer, as a factor suppressing per-store sales in Australia and New Zealand. Over the year, Lovisa shuttered 43 outlets worldwide while adding 160 new sites, expanding its total footprint to 1,136 stores. The firm also introduced its Series 5 store format in 53 locations, with an additional 28 slated for rollout in the first half of FY27.