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Re the accounts - given current market conditions, my view was that it was always going to be a good time to account conservatively.
MSG no chance of raising unemployment in the UK - will be a structural issue for many years to come, thanks to Brexit.
Admin costs and other admin expenses I would think will include items like returns, new warehouses, automation of warehouses. To my mind it will include all costs even the supply chain costs because it states distribution costs.
Yes, but what about the "Other administrative expenses". I look directly at the annual report and the "CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME" (pg 54)
https://www.boohooplc.com/sites/boohoo-corp/files/2022-05/boohoo-com-plc-annual-report-2022.pdf
Under their notes, there is some generic information what they mean admin expenses, but I couldn't find a great detail of breaking down of the "other admin expenses" this cost.
If anyone has more insight on what costs capturing under this, please share.
The Admin costs include selling so I would think that may be the marketing costs for the new brands too.
Central Banks want to rise unemployment, because in this way they can manage inflation. Tight labour with high inflation pushes wages up.
Many focus if people will keep buying clothes and if Boo or Asos revenue will keep growing, personally I would be fine if during this period the revenue decrease a little bit as long as the admin costs decrease considerably. Boo reported admin expenses of 1 billion! 200 million more since 2021 (it doesn't include the supply cost) If they can decrease admin costs by 10% then the EPS will be back at around 7 / share which will push the SP up dramatically. To put it into perspective and for comparison Asos has 4 billion revenue with 1 billion admin cost
ASOS going up now, about time BOO went up seem to be flogging a dead horse with this one lately.
The 18-30 age group have never had such a healthy labour market. Whilst households will struggle generally, the BooHoo customer cohort will be ok.
A recession keeps being put off by name as some trickery with words is played out.
Most stocks in the UK are not doing well & there are daily snap-ups. Holding for any length of time is probably not what you need to do at this moment in time. Core industries are best.
57p territory for BOO. Some influencers' say lower (possibly but not today). A sudden surge can happen at any moment & +100p has an outside chance every day.
BOO is a good investment & will be in a better position next year.
The elevated threats between Russia & NATO are gearing up for WW3. Happened in the 80's & the both backed down. Providing BOO doesn't loose their customer base to military service all will be good.
BUY on the dips & there will be many.
people won't scrimp on clothes. When times get tight people put off big ticker items they might otherwise have bought. People will still spend a few quid on their underpants! The whole thing is media fuelled hysteria!
A year ago, I can understand why we were wondering about the fall of the SP and we were discussing the unethical practises of shorting etc, but a year forward, it seems the SP of Boo, Asos were more like birds in mines... Indication of the sell off that is happening now in almost every sector.
Here is a question though. Would a recession recession be good or bad for Boo? The probability is high for recession in US as well as in UK.
For the short term I believe will be bad and will affect the SP negatively, but in mid term and if Boo has enough money to navigate the storm. even if the revenues slow down, the profitability will improve, because the inflation will be handled and also because of the unemployment , the cost of labour will go down.
Anyone has any thoughts, how an announcement of Recession in US and/or UK, will impact boo?