Great business, page-6

It’s difficult to draw comparison between valuations across exchanges. In this case comparing a company listed in Germany where the exchanges are very conservative when it comes to valuation v the ASX which typically sees higher valuations. Furthermore in Australian nearly 1 in 2 people (~13m) are invested in stocks v 1 in 6 (~13m) in Germany due to the more conservative lower risk profile of Germans v the higher risk taking attitude of Australian investors. Even the German pension fund is conservative in their investment nature v our Superannuation system whereby much of the investment is tied up in equities. This might explain why out superannuation assets (3.5T AUD) is 5 x the size of the German pension fund thait employees pay into (400B euro or 700B Aus). That’s not to say that Lovisa will not retreat further. I think it will considering macro conditions. However, the company has great metrics including a significantly higher ROE compared to most retailers “worldwide” including Bijou B and will have only taken 14yrs to reach 900 stores (Lovisa commenced in 2010) v 60yrs for BB (started in 1963). I too will continue to watch for an attractive entry position and will remain patient as tje present macro conditions plays out.