The Lovisa Holdings Ltd (ASX: LOV) share price is taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) jewellery retailer closed yesterday trading for $26.82. In morning trade on Friday, shares are changing hands for $26.05 apiece, down 2.9%.

For some context, the ASX 200 is up 0.7% at this same time.

This underperformance follows the release of a trading update ahead of today's annual general meeting (AGM).

Here's what we know.

Lovisa share price falls on trading update

The Lovisa share price is sliding despite the company reporting a 1.0% year-on-year uptick in its global comparable store sales for the first 20 weeks of FY 2025.

Management noted that sales for the 20-week period were up 10% compared to the same time frame in FY 2024, citing benefits from continued growth in Lovisa's store network over the past year.

Commenting on the performance in FY 2025 to date, outgoing CEO Victor Herrero said, "We continue to maintain our ongoing focus on expanding our global store footprint across all markets in which we operate."

Lovisa has opened 27 net new stores in the financial year to date. That comprises 40 new stores opened and 13 closures, two of which were related to the conversion of Lovisa's UAE franchise business to company-owned and two relocations.

The store network now stands at 927 stores across 49 markets, with three new franchise markets opened for the year to date in Ivory Coast, Republic of Congo and Panama.

"Compared to this time last year, we are currently trading from 91 more stores in nine additional markets," Herrero said.

What are analysts saying?

If you take another look at the Lovisa share price chart up top, you'll see that this company has high growth expectations.

And according to RBC Capital Markets analyst Wei-Weng Chen, the first 20 weeks of FY 2025 have not met those lofty expectations.

"Comparable sales, total sales and net new stores were below market expectations," Chen said (quoted by The Australian Financial Review).

Following this morning's trading update, Chen expects Lovisa will open 34 new stores in H1 FY 2025, compared to consensus expectations of 48 new stores.

With that slower growth forecast in mind, RBC maintained its underperform rating on Lovisa stock with a $25 price target. That's about 4% below current levels.

Lovisa share price snapshot

Despite this morning's retrace, it's been a great year for Lovisa shareholders.

Longer-term investors will have received 87 cents a share in partly franked dividends over the past 12 months. This sees Lovisa stock trading at a trailing dividend yield of 3.3%.

Atop that handy passive income, the Lovisa share price has gained 41% since this time last year.