Lovisa Holdings' (ASX:LOV) declining same-store sales may reduce earnings per share expectations for the company for fiscal 2026 to fiscal 2028, said Jefferies in a Friday note.

Jefferies noted that the company, at its annual general meeting, reported a slowdown in same-store sales, falling from 5.6% in the first eight weeks of fiscal 2026 to an estimated 2% in weeks nine to 20.

The investment firm has cut earnings per share forecasts by 8% for fiscal year 2026, and by 2% for both fiscal year 2027 and fiscal year 2028.

Jefferies said that Friday's 12% share price drop was "harsh" but not "unwarranted" and it continues to view Lovisa as a quality retail growth story with a highly differentiated business model, dominant global scale and an opportunity to take store count from 1,075 to more than 3,000 in the longer-term.

Jefferies kept a hold rating on Lovisa and decreased its price target to AU$33.40 from AU$37.

The company's shares rose 3% in recent Monday trade.