Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Dan you have to think why Next has been so much more successful that Topshop? they are still pretty a bricks and mortar business with a growing online business.
People like the brand and there sales gimmicks, people go for fashionable items where they think they are getting for a bargain, that is how we behave and it works.
Think this board is proactive Dan, they have nailed the platform which is digital and it can be improved further.
You are right, they can not afford to sit on their laurels, I think the owners son Umar is very savvy and gets the social media scene, he has a lot of celebrity friends and has a cult following himself, he is based in LA, don't think there is a need to have an office there only to woo US influencers and celebrities and for him to maintain his playboy lifestyle.
Think if you have seen the parliamentary enquiry and some of the actions they have put in place and appointments. Boohoo, have a good mgmt team that will look to enhance boohoo, we have all been talking about topshop acq I rather we spend more money enhancing the service and distribution. Let’s see if anything gets announced ASOS announcement of new distribution centre came as a surprise.
The board have incentives to grow the share price and I can see this happening
HI Dan, do not think it will, China is moving fast, but if you follow the trend the lower value add businesses are moving away from china and relocating, China do not make the best clothes always been South asia, that is where traditionally the Manufacturers are based and if you look at the labels that is where they come from. Your putting words in my mouth. It is a reality of where some of the businesses are, but they have some great businesses such as Huawei, ALibaba , Tencent and many more that are leaders and in a few years China will be the biggest country in the world, but as you know China are focussing more on the next revolution and not the past. Also with what has happened last year there has been a bit of a backlash to chinese companies driven by the Trump administration will be interesting to see what Biden does. Also the share price here was impacted by the leicester scandal, you are aware of the COncnetration camps in China, not good for their image and a lot of people are opening their eyes to that. Anyway I really do not know what this fascination of Shein and TikTok you have come from, Youtube and Instagram are platforms that will still give us high growth and boohoo has been a great success and will continue to do so, there is plenty of room to grow. Zara parent company is a 82bn market cap, can Boohoo not grow to a 10bn company at least?
Yes UK talent has been tapped into and will continue to do so, we live in a free economy where companies can come and go, but boohoo is a UK company and western companies tend to be seen higher values which China aspires to.
With what you say about investing, that is true for all, just think we are not there with Boohoo and still see many years of growth. People pay a premium for service and Boohoo can get there.
No just about the tech Dan of the underlying product and service is inferior.
If you take the Chinese as an example , they rely heavily on British talent for the creativity part of games making.
Plenty of growth for boohoo due to the collaborations and loss of traditional retailers.
Easy with hindsight but should have stayed with FXPO and CAML risen 40% since I have been holding here with18% gain also missed Argo could have been 2000% up now this is a bag of manure.
It will go up just frustrating other plays been better than this
Not sure how to assess the Boxing day sales, Next usually has a lot of footfall then and with covid not sure if they will see that.
Feel the online retailers will have fared better.
Also does anyone know the arrangement Boohoo have/had with Asos why do they sell stock on their site? i hope this year has been an eye opener and we stop doing that, as surely that must be cutting into the margins, ok they have the platform and customer numbers, but boohoo have been growing aggresively now they can hold their own?
If we had to make one acquisition what would you want? I think Topman/Topshop would be good, but will be too expensive, but owning the big flagship stores say in London, Manchester, Birmingham, Leeds & NY (Think they still own that but did sell part of the business in 2012) may not be a bad idea, but the brand is very good and if anyone buys with no bidding war it will be far cheaper to what it was worth in January of this year, so long term will pay off.
Miss Selfridge or DP may not be bad brands if we buy they at a good price. We can overpay for Topman but hope they have the strategy to get the best out of that deal.
Think they will be decent, we have had lockdowns, but Debenhams have had a firesale so could be some impact but they are growing aggressively abroad. But debenhams is a different market to them, what will be interesting what the investment they have made pays off in a few years, autonomous warehouses, will help with efficiency, growing in the US will be key.
Boohoo like Asos have a lot of cash they are sitting on, will be interesting what they do with the cash, I want them to acquire a good deal if we can and keep investing in Tech aswell and products.
Look at Ocado, the tech they invested in has paid off, appreciate they are completely different to Boohoo, but better Tech can help with efficiency and sales.
To all those jumping on Boohoo criticizing the minimum pay done by outsourced firms in leicester the below is an interesting read as i said many others will be flouting rules and have been found out. I know this is between previous years, but it is a problem companies will look to do. Boohoo has learnt its lesson and handled it perfectly.
Neither less utilise the concentration camps in china.
https://www.bbc.co.uk/news/business-55491925
Wouldnt touch S4, they have risen a lot and will be interesting to see what those marketing budgets will be.
Puretech looks good but need to do research.
Think there are better oilers out there like Tullow and GKP/Genel.
Yes i was being sarcastic, if they can grow aggresively, the share price will trade higher.
Look at where we are now and the trend line last 3 years we have not grown that much on share price terms, ok is is 10 times since 2015 but they have grown a lot and made some good acquisitions?
Anyone feeling they will buy Top man or Burton? Top man will be a challenge i think as a few are after that, but i rather they make a good deal than a bad one
I hope you all get to see the deal next year, this company has been disappointing and he has no more excuses, hopefully with everything done now, a deal can be done.
One good thing he is not paid that much, unlike other CEO's who bleed the company but like him do very little to justify the salary.