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On line sales looked pretty poor. The issue s here are goodwill/trust (after the prepack), portfolio (associated with glamour wear which is Covid impacted), and the brand - which is weaker online than some bigger competitors. Jumping into casual wear may seem sensible in the circumstances , but there are other brands with more equity in that space. Will Quiz have the right relationships in place after the pre-pack? Having to effectively restart the business may well slow down growth as the cash pile dwindles. If they can start to grow the business then yes, they're in a much better position than most competitors.
PF....i meant within 3yrd. They are improving online sales so the next balance sheet could show a marked improvement and then QUIZ could be on its way to 20p 30p 40p just as boo.hoo did.
I can remember buying boo at 25p but sold too soon at 35p. Look at them now. Imo...never say never?
Don't know about being the next boo, takeover target for more likely, but I can see this making a decent climb.
Typo sorry. RERATING to over 30p this year....?
Hello all.
I have looked into the possibilty of QUIZ maybe terating to over 30p this year. Their move to increase online sales could be a gamechanger. Imo?
Do other investors agree we could be the next boo within 3 years?
GLA
The NEXT H1 results are massive for Boohoo
Next SP is up 2.63% on H1 results
https://www.lse.co.uk/rns/NXT/results-for-the-half-year-ending-july-2020-6yghgzj5x4aw2i6.html
Next last year did 3.997B revenue with 854M profit
BUT in H1 their sales from RNS were -33% down with guidance for -12% down on full year - Ouch!
They only made 9M profit H1 - down massivly
In store sales are clearly declining & people are moving online
Boohoo last year was 1.234B revenue with 90M profit
H1 guidance is 25% growth that they will achieve or exceed
Estimated H1 profit should be around 55-60M+
That is a lot more than Next
This is excellent news for Boohoo
I have been looking at the numbers & think 480 is a reasonable target for 6 months time, with an interim SP on 400 approx come Sept 30.
If you look at 2016-2020 numbers they grow 44% to 97% every year without fail.
In 2020 they did 1.234B revenue generating 91M profit.
Extrapolate the growth at 50% (they guide 25% but 44% is the lowest they've done & lets face it Covid will be 50-100%) so a conservative 50% puts Feb 2021 @ 1.85B revenue with 135M profit!
Current Market Cap is 4B would be 6B giving a 480 SP
Compare ASOS who did 2.73B revenue with only 35M profit & now have a 5B Market Cap
Boohoo looks more interesting as multiple brands, better worldwide presence & higher profit than ASOS.
Also through Social media & celebrity endorsements they seem to have better momentum
ASOS is 'only' growing at 13% - 19%
So from this it looks like a 50% gain is achievable in 6 months
We have 9 trading days to buy in at 310-320 for a 25% to 50% gain - be greedy
"be greedy only when others are fearful"
Warren Buffett
No but......QUIZ is set for a good rise now they got most if not all the business in order....reduced shops and continue improving online sales....expecting decent numbers in the run up to Xmas....
added few recently with that in mind.....
GLA.
Well over double figures soon
The spread is rather dis-jointed. SP 9 bid 8.22 Ask 9.08, perhaps they do not want sellers?
Paul on Stocopedia's small caps report was an expert in retail and pre-pack situations from his past career/ experience. Very good analysis today.
Basically he likes the new set up with turnover rents and short leases.
He is encouraged by the most recent August trading. "Sales... are massively down, but ... this is a closure & re-start situation. Therefore I would expect the short term figures to look awful.
The brand is most associated with Occasion wear and this has been hardest hit, but this will come back.
Cash situation is "a strong indicator that the business is not apparently in any danger of going bust"
Overall, Pauls says "This should provide the basis for a profitable business going forwards. Time will tell."
Xmas is coming make sure you all buy your wife, girlfriend and daughters something from Quiz.
15p by Feb is my prediction
I’m in, only 1.5k but this is a massive risk.....but maybe just maybe......
That's exactly what I thought, its an incredible dour statement...I suppose they haven't got a great deal to shout about. Sold up this morning, I will revisit when the current climate improves.
Wheres the feelgood statement in the RNS from a board member? Not asking too much is it?
The website has had a make over ! It looks much more attractive !
Boom it's clearly not....HOWEVER, now the bad news can put away we can expect the long long way to recovery.....unfortunately the pandemic is still going to linger for a while which will continue to impact forward revenue but at least the company restructure is set now to minimize the damage....its probably next year before we can start to see big improvements.
IMHO, GLA.
Bad news is out the way...so it's only up from here
Seems unlikely, there isn't much good news to digest from the update. i suppose they still have over £6m in the bank and have successfully renegotiated leases but i was expecting online sales to be much better
Here's hoping
Don’t agree Dipe.
They should be driving sales through their own (online) channels, own/use first party customer data and strengthen the brand.
Supermarket brand distribution would cheapen the brand further. They have no authority in fashion.
They could look at other fashion sales channels such as Next, but not supermarkets
If this kind of company want to survive in this condition need to sell through big supermarket like (Tesco,Sainsbury.......) because they are doing lots of clothes Now a days and they got massive visitors every day
riosurfer: Excellent post - agree 100%
I think all this will come in time. Quiz is fairly new to online and having ditched most retail this will be the focus moving forward. The company has acknowledged there is limited available spend on advertising at the moment but reading between the lines I expect this to improve once the finances have sufficiently improved.
I looked over their website again and there are any number of UX improvements they can introduce. The big opportunity is the brand. Overall, the brand needs more cohesion, with a stronger core idea. It needs a distinctive look and feel . Product photography needs to be better, with product shots from different angles/ close ups and context photography, showing the clothing in an aspirational setting (ie at a party, for example). Photography needs to be tonally consistent (as per the look and feel). Call outs for the sale need to blend into the site experience, rather than look like invasive banner ads etc etc.
But as you say davidpqz, this is all upside opportunity. The management need to give this focus, but I imagine they have had their hands full with the covid, pre-pack and other stuff.
I agree that it is easily fixed. The fact that it hasn't been fixed points to lack luster management. I'm not inspired by the company but the cost savings from the prepack admin are very substantial and they recovered very strongly from exactly the same situation in 2008.