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"They have also stated that they expect return rates to increase back to the norm once lockdown has ended."
Any figures? This is a major investment metric for me, I would like to see long term trend since IPO.
Revenue is vanity profits are sanity and without a returns figure and it's trend it's impossible to judge profitability going forwards
My money is on returns increasing more than anytime in the last decade as the core young demographics are the ones having a cash crunch according to ONS.
I want to establish a relation ship between returns and profitability from past data which boohoo does not publish
Then add increase in returns which I am predicting and then calculate future profitability.
Kallumama, returns during lockdown have been lower than pre lockdown for both boohoo and other online clothing retailers. Boohoo haven’t yet made a statement about how returns have behaved since the high street reopened but both boohoo and other online retailers have previously stated that they believe the lower rate of return is due to a combination of different nature/mix of products purchased during lockdown and the effect of lockdown itself and it being generally more prob,emetic to go to the post office etc to enact a return. They have also stated that they expect return rates to increase back to the norm once lockdown has ended.
As they say themselves, "this is non-independent research"
Will have to wait for the next cash figures to be in public domain to build some arsenal of forensics in accounting
Is Shadowfall report in public domain, any URL?
Any idea about details of the Returns, boo seem opague on that.
I doubt if you expect me to teach how to consolidate group accounts and what the treatment of minority interests is. Particulalrly when you are starting from a low base.
PLT accounts to 29/02/2020 are in public domain, profit before tax was £45m
It was Shadowfall who claimed that net cash cost for Boohoo to buy out PLT minority interest was £1bn by 2022.
As I say , utter humiliation.
"£100m of which was cash"
Has this 100m been reflected in Boo cash figures?
"The initial consideration is to be settled through a combination of shares in the Group totalling £107.9 million and an up-front cash payment of £161.9 million, funded from the £240.7 million of net cash that the Group had on its balance sheet at 29 February 2020"
But (and its a big but), PLT had £161m of current assets at Feb 2020 (2/3 of which Boohoo entitled to), £100m of which was cash.
Even Shadowfall humiliated by this acquisition of remaining interest.
"Boohoo have always stated their return figures at their AGMs"
hahaha ...I have read all the reports and RNS's there is nothing in it. Talk is cheap if you have done your research please share URL of report with page number.
"Most of the payment for PLT was in Boohoo shares so hence why Umar Kamani "
Again no URL for report and page number
"Stop believing the hype and start doing your own research on Boohoo."
You are the one creating the hype without any proof
"Its gone 7p.m. ......PP1 getting more intoxicated."
I didn't write a word on the forum at the time PP1 was saying "What a relief to get rid of Kallumama"
Seems like he/she likes to shut off all senses when encountered/challenged with logical reasoning
Stop throwing you toys out of the pram
Its gone 7p.m. ......PP1 getting more intoxicated........the time to start getting bitter........the time to start filtering people.......the time to have more to drink........Poor PP1.........
You meet the best and worst of human beings on here.
Filter the worst and keep the best.
It makes life so much better.
What a relief to get rid of Kallumama - should have done it yonks ago.
PP1...doing the night shift......talking to himself......trying to snare the mugs into buying Boohoo.........slowly getting more intoxicated........Poor PP1.......Have to feel sorry for him......
Kallumama - now you're filtered because I'm tired of your rambling nonsense and your unwillingness to read posts properly and learn from them.
PP1.Headwinds.Headwinds.Headwinds.Overvalued.Overvalued.Overvalued.Stagnant.Stagnant.Stagnant........So many great opportunities to make real money......Why invest in a totally descredited brand???
Kallumama - may I suggest you read my posts in full more than once so you start to learn the truth about Boohoo.
Kallumama - High Street Stores have warehouses too. Where do you think they keep their stock? It's not all in their stores. High Street Stores have double the costs of stores and warehouses plus the staff for all these.
Boohoo have always stated their return figures at their AGMs and their return figures have always been lower than ASOS.
You've bought into the hype that there will be higher operational costs for Boohoo due to suppliers. That is hype and has already been proved wrong in the financial updates since July 2020.
Young people will never be fed up of online hence why they're always on social media. Older people are time conscious and online suits this.
Most of the payment for PLT was in Boohoo shares so hence why Umar Kamani will be growing and growing prettylittlething so his Boohoo shares also rise with this growth.
Stop believing the hype and start doing your own research on Boohoo.
Kallumama - you've so much to learn. Mahmud Kamani's stake may have been 60% before IPO however for an IPO he had to sell most of this stake. The Boohoo share price at IPO was 50p. It is now 359p. Mahmud Kamani's 13% shareholding in Boohoo is areound 150m shares at 359p is around £539 million. Mahmud Kamani wants to grow his £539 million In Boohoo shares by growing the Boohoo business and therefore the share price.
The figures for prettylittlething were always in the financial statements for Boohoo because Boohoo owned two thirds of prettylittlething from 2017.
Shein, MKS and Next need to watch out for Boohoo. It is Boohoo who will be taking market share of MKS and Next with the Debenhams purchase. Shein have the worst reviews you can read so they're no big threat to Boohoo. Boohoo is their threat.
Young people always find money to buy clothes and more and more of them will go to Boohoo for the price and fashion. Boohoo are miles ahead of the pack when it comes to getting the latest trends online. Primark don't have a look-in with this.
Boohoo are so ahead of the game, this is how they've grown and will continue to grow.
I do not know why you are getting so defensive, I never asked how much you own and how great genius you are and how rich you are.
"Mahmud Kamani has never owned 60% of shares in Boohoo"
You are trying to say I am wrong, but you don't provide details of your research i.e. how much he owned before the IPO and how much after the IPO etc.
"Mahmud Kamani would never let Boohoo fail. It is his passion, hence why it will continue to grow and grow"
In my 16 years of investing I have never come across a CEO which says otherwise. The point of this forum is to understand if it's true and how it's logically possible. I have already stated facts which will stop them from growing if the shop remain open. What are you arguments and facts for stating it will keep growing and growing except for this emotional rant.
I have already stated they won't grow because of:
shops are now open
pressure on their core young shoppers which are out of employment
pressure from shein, mks, next and other who have come up with their own platforms in the last year besides the in incumbents like asos
operational cost of high street stores are lower so they will compete harder
higher return figures which boo does not publish but asos transparently publishes
cost pressure to boo from higher operational cost due to compliance and suppliers with complaints vat and and without slave labour
generally people are just fed up of the online model which they were forced into during pandemic
boo paid "£323.8m" for 34% of PLT i.e. valuing full business for 1bn, i feel like crying :)
Can you please share your calculation about why you feel 1bn valuation for PLT is attractive?
500 Revenue is vanity, profits are sanity, please share your insights. Please share link to PLT profit disclosure before transaction.
'I have held them through every up and down.' 12.29
Do I win a prize for this??
Kallumama - I invested £100,000 in Boohoo shares in 2015. I have held them through every up and down. They are now worth nearly £1.3m. I research Boohoo on a regular basis. I will be keeping my Boohoo shares for many years to come.
Mahmud Kamani has never owned 60% of shares in Boohoo. Mahmud Kamani has more money invested in Boohoo shares than he sold. Mahmud Kamani would never let Boohoo fail. It is his passion, hence why it will continue to grow and grow.
Premier Foods use their free cash flow to pay down debt. Boohoo have no debt and use their free cash flow to grow the business.
Boohoo bought US business Nasty Gal for £20 million and have grown it into a £100m revenue in less than two years.
Boohoo bought two thirds of Prettylittlething for less than £3 million. Boohoo paid a fair price for the remaining one third of Prettylittlething. Prettylittlething had grown to £500m revenue when Boohoo bought the last third of it and so it paid a fair price for it.
Please do some proper research instead of spouting rubbish on here about Boohoo.
"As we come out pandemic and online sales crumble"
I will leave that here so people can read this statement. I will forward this to Amazon shareholders as well.
Not invested in abf, should say pfd, they are going down kallu!
Kallu clown 13% holding now vs 60% ar IPO means he has increased his holding as value of the company is worth more than the 5 times multiple (simple maths as my son would say).
With recession loomong you should be more worried about your ABF shates as people move to cheaper supermarket brands.
"Kallumama - Mahmud Kamani, Founder Chairman, owns 13% of Boohoo shares so the majority of his personal wealth is invested in Boohoo shares. Hence why he is passionate, driven and committed to Boohoo."
You are wrong Kamani has already taken out vast majority of the money from the company, his stake would have been close to 60% at the IPO this has fallen down to 13% as you state. Further he has been using the company's free cash flow for buying companies from his family the american brands at exhorbitant prices, further taking out money from boohoo to his personal bank account.
Instead if he just grounds the company to zero and takes it into administration he can use the liberal insolvency laws to shove the suppliers and take the company private out of adminstration at a much lower price.
All he needs to do is to become a secured creditor of boohoo by lending it some money when the time is right.
As we come out pandemic and online sales crumble the above becomes a more likely outcome.
I used fcf because that is the right measure to compare both companies.
ROCE cannot be used for a company like PFD as it invests very little in the business instead it invests in paydown it's debt much like householders do. boohoo on the other had would use ROCE is it put fcf to buy other companies, albeit from it's own family at an inflated price.
Don't believe AJ Bell they make money by making you punters trade.
If you track the fortunes/net worth of the Kamani family since it's IPO you will find that their net worth has grown multiples of the share price of boohoo, this is a red flag or filter I use for my investment decisions where net worth of promotors multiplies much faster than the assets
In this scenerio it's more profitable for the promotor to take the company private by having some secured charges against the company and putting it into administration and then taking it out of administration at a cheaper price privately.