Ive looked at Lovisa a number of times over the last year and as others have pointed out its ROE and margins are fantastic.

It reminds me of Michael Hill or H. Samuel (in the UK).Both have done very well over a time period of several years, but extend the SP graph back further and it tells a very different story: a steady decline for 5 years, before the reason uptick.

Both were market darlings and expanded rapidly within their own countries and oversees (MH). Both over-extended and were highly vulnerable to tightening credit to the less affluent members of society. They had to close stores rapidly and exit from new geographies. I am sure there are significant differences in terms of debt load, strategy etc. but discretionary retail is not a space I personally feel comfortable investing in. (Although tempted by Dusk and Adairs on their great valuations)

And they sell crap.

Ratners, another UK jewellery chain imploded fantastically after the founder and majority owner, admitted as much, a decade ago with hilarious consequences