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And Jjoo hiding somewhere under sofa with tin hat?
I told you guys don't bet on growth when the barriers to entry are so thin
The future quarters are not going to be any better, remember that Q3 and Q4 last year were dominated by lockdowns and fear in the high streets, so the numbers are not going to look any better in the next two quaters.
If you guys think this is a one of you are again deluded and dreaming.
Boohoo's growth story is finished.
"Kallu - what is it that makes you think boohoo is so special that they will be able to go into their results update missing their previous guidance by a significant amount and not meet their obligation to inform the market in advance?"
What happened to your expectation Pmoran?
They reported Q2 vs last year 8.2% growth
and vs Q1 this year less than 1% growth
And you thought they should be warning beforehand?
Haha here we go again.
Boohoo was growing by massive rates before the pandemic, so ive no clue what your refering to. Its just more drivel.
I know exactly why Primark dont sell online, and no it isnt useless talking about costs, because this is exactly the problem with very low margin businesses like Primark. You only have to look at the last 4 years at ABF to see whats going on. You think its efficiant because it sells huge volumes. Just so were clear, thats not the sort of efficiency i was previously talking about. Funnily enough i was talking about how effeciant it is at making money.
Wow 160 posts Kallamitty.
You can afford a multi pack of Primark shirts now.
A job well done I would say.
Why oh why does anybody still reply seriously to his nonsense
"Why don't we both attend the next ABF shareholder meeting, and you can ask them to confirm there are no barriers to entry online."
Mate, I don't think you know anything about business.
Primark sells 10 times more clothes per sq m than H&M, 10 times, not 10% more, not 100% more, 1000% more.
Do you even understand what that means?
It means it's not feasible to do business online, so it's useless even debating whether/how much it costs.
The day Primark even contemplates selling clothes online I will be the first shareholder to sell all my stock.
"195 million in revenue to 1.7 billion"
That is history with the benefit of the pandemic when shops were forced to close, it's never going to happen again, it was a once in a 100 year even, just chill
It takes a click from customers to switch in the online world and nothing more, there is no moat, you can see that happening with Shein, there are more customers going to Shein's webiste while customers to the Boohoo website are declining, same for PLT in US
Results on thursday will confirm that.
Catching up and I must admit Kallu asks some good questions I just don't think he realizes what he is actually asking. Jjo some informed responses.
Kallu - maybe you can take all your wisdom and experience *chortle* over to the ABF board.
Although I suspect they won’t tolerate you for very long either.
Kallu, come back to us when abf can get anywhere near the returns per dollar invested vs boohoo. You strike me as someone who has read two books on Warren Buffett and has been in the market a short amount of time. You come across as not a value investor but a value trap investor, investing in stagnant businesses looking for low PE multiples etc. All investing is value investing, whether it be a high growth business or not.
Why don't we both attend the next ABF shareholder meeting, and you can ask them to confirm there are no barriers to entry online. The sound of the laughter would be deafening. Why won't you listen to the board of your own favourite investment when they tell you the costs are prohibitive? Fact is, they know they would be sinking costs for no additional market share. Primark is basically a sitting duck. It can't fight back, so you better hope you are right about people's shopping habits over time.
Just so you know Kallu, there's no such thing as a profitable business that goes from 195 million in revenue to 1.7 billion in 5 years with boohoo's margins etc, that has no moat, and where it's not doing anything better than the incumbents. Doesn't exist.
Kallu - what is it that makes you think boohoo is so special that they will be able to go into their results update missing their previous guidance by a significant amount and not meet their obligation to inform the market in advance?
Ah good because you said online wasn’t competition before but “ Boohoo is competition” at least explains your obsessive worry & rightly so
"share you’re not interesting in"
I have been very clear on this for ages, Boohoo is competition and I am more than interested in competition.
Strange to say the least.
157 posts this month on a share you’re not interesting in
What’s wrong with you?
"All the businesses beyond a certain size will fair better than the smaller firms. Boohoo is comfortably bigger than the threshold."
I like your attitude, always positive! Bottomline is in order to have sufficient scale to be delivering clothes throughout the world profitably with sufficient barriers to entry T Rowe will have to combine ASOS, BOoohoo and Zalando. Even then it wont become the best value provider in the market like Primark but it might be able to take some reasonable share of the market. But it won't happen just yet this will happen when most growth hungry investors are off the table and T Rowe have 20% of shareholding of all 3 companies. could take a decade.
" but you have to think a lot is priced in here. "
Do you have a choice?
"The big number will obviously be growth."
It won't be anywhere near 25% or 28% for either H1 or Q2. My guess is single figures for Q2 and mid teens for H1.
"revenue growth for the year being left at 25% in the last update"
This is not possible unless Debenhams really really takes off or Kameenas cheat the numbers.
Kallu, I'll leave it up to the intelligence of anyone reading your posts as to what your returns are likely to be. Im sure your childlike grasp of basic concepts will inform their opinion as it does mine.
Student finance can be very tricky
Smaller relative to the sector as a whole, not relative to any individual company you weapon. Advantages of scale are not linear. All the businesses beyond a certain size will fair better than the smaller firms. Boohoo is comfortably bigger than the threshold.
It'll be interesting on Thursday. At the end of the day in the short term if cost pressures have lowered Profit in H1 and its behind expectations, the price could come under pressure, but you have to think a lot is priced in here. The big number will obviously be growth. Hard to say that if it's below the roughly 28% analysts expect but still on target for the 25% guidance how the market will react given the general macro jitters at the moment. Even slightly under expectations It would be still a very healthy growth number given both the current price and record comparables from last year.
It's fair to assume the revenue growth for the year being left at 25% in the last update is because there are some pressures somewhere, but boohoo do like to under promise and over deliver so who knows.
"Haha this is priceless."
Print it out, frame it and sell it on, this might fetch you a better return than numbers on your Boohoo nominee account.
Haha this is priceless.
Kallu, you have to be a parody account. There is simply no other explanation for this level of delusion, other than someone doing it for comic effect.
You may as well have justed logged in here just now Kallu and typed "I have absolutely no understanding of investment or basic business principles" How long did you say you'd been managing your own money Kallu? If it's more than 5 minuites you should be embarrassed of what you've just written.
" As smaller competitors don't get this scalable benefit"
Boohoo is a smaller competitor of Shein
You see this playing out in the US market where Boohoo was destined for all the glory but is loosing market share to Shein
Why so? Because Boohoo just does'nt have the scale in US, ROW, ROE. Zalando is picking up the pieces in Europe where it has scale. Why does'nt Boohoo have scale in US and Europe and Rest of the world? It doesn't have warehouses so cannot ship quickly enough, it doesn't have good partnerships with delivery firms as it doesn't have the volume compared Zalando and Shein which do have the volume, so it's unable to offer good delivery prices and returns policies in US and Europe.
Boohoo's growth story is history, your only bet is to wait till the valuation drops to a range where Boohoo becomes a value stock rather than a growth stock. Boohoo will never ever be able to trade at 4 times revenues like Shein guaranteed, there is no point dream about it. But you guys continue dreaming as there is not incometax, VAT, CGT on dreams.
" you don't seems to understand return on capital"
Uncle Jjoo, ABF is the most efficient food manufacturer and apparel retailer known to humanity, even more efficient than American, Chinese, German and Indian companies that I have studied.
"You may then have an investment revelation about the cost of growth to the two businesses etc. "
Yes, the cost of growth is relevant if barriers to entry are lower, which is not the case with Boohoo as it's been clobbered by Shein and will continue to do so. Accept it, nobody believes in Boohoo's growth anymore otherwise it would be trading at multiples of revenues like Shein and it clearly is not. And that is the problem with betting on future growth, it might come it might not come, it all depends upon barriers to entry which is not very easy to understand. In ABF's case I don't really care as the current sum of parts valuation would list Primark valuation as close to zero, so any profits are just an addition to the valuation.
" but I'd much rather be in boohoo in times of costs pressures that's for sure"
You are wrong again, Primark has recently increased it's profits forecast on the back of lower operational costs and forecast that operational cost advantages are here to stay for next financial year. Please look at the last trading update. ASOS on other hand has warned on costs, due to logistics and returns, same will be true in Boohoo's report tomorrow.
" As smaller competitors don't get this scalable benefit"
Boohoo is a smaller competitor of Shein
Wow Boohoo workers getting 30% pay increase great news best place to work . Boohoo and ASOS leading the way 30% increase for its warehouse workers . And and primark struggling for coat hangers as shortages hit hard .
Kallu how can you post stupid posts like that without thinking ABF will be affected? Now you look like an absolute idiot
And Dan is also correct, boohoo are in amuch better position than most to weather these storms. If anything such crisis are only going to speed up aquisition opportunities. Much harder for smaller operators and those with traditional business models to absorb these costs.
Obviously the best businesses in this circumstance are those with pricing power, but just as we are seeing with wizz air, when a crisis hits, it can be a great opportunity for nimble, low cost members of the industry with cash in the bank to clean up.