Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
hxxps://citywire.co.uk/funds-insider/news/the-expert-view-aviva-boohoo-and-superdry/a1431170
500p JEFFERIES TARGET - BUY
Leveson right man for Boohoo, says Jefferies
Jefferies thinks Boohoo’s (BOO) appointment of Brian Leveson to oversee its ‘agenda for change’ programme will have a positive impact on attempts to reform its supply chain and business practices.
The fast fashion retailer was hit by scandal this summer after the exposure of low pay and unsafe working conditions at factories in Leicester.
Analyst Andrew Wade maintained a ‘buy’ rating on the company and a target price of 500p for the shares, which rose 3.8% to 300.7p yesterday.
Leveson, the former High Court judge who presided over the Leveson Inquiry into press ethics, will provide independent oversight of the programme, with Boohoo also committing to publish his reports.
‘We are encouraged to see this experienced and high-profile appointment, another incremental positive as the group continues to effect the changes detailed following the Independent Review,’ said Wade.
Paul Scott 56 mins ago
Fashion retail is my sector specialism, and I think Boohoo (LON:BOO) is by far the best share in my specialist area. I've been raving about it here since it was 23p, and readers have made millions from it. Hence I'll continue raving about it, because as explained today, I reckon we could make many more millions from it, and ultimately this is all about making money! You think it's uninvestable, fine that's your opinion. I think you're behind the curve though. The company is on a journey from being a private company, to being a proper plc now, it's coming of age in a way. Watch the webinar, and you'll see what I mean. This is why the volatile founder is being side-lined a bit, as his style isn't really suitable for a business of this size any more. But operationally, his knowledge & experience are still invaluable. Over time, founders have to loosen the reins as time goes on, and businesses develop. I think the discipline of being a plc is good for BOO.
Boohoo's half-year sales rise by £251m
John Moore, senior investment manager at Brewin Dolphin, comments on Boohoo:
Boohoo’s results have real sparkle spark to them – with strong growth across the board and guidance for key metrics lifted. It is particularly noteworthy that this was all achieved against not only the backdrop of Covid-19, but the scandal around working conditions in Boohoo’s supply chain.
Neither development appears to have adversely impacted on sales and, before today, the company’s share price had almost made a full recovery from July’s near 50% fall in the wake of the scandal and the negativity it brought. The company’s narrative appears to be moving away from a focus on Boohoo to some of the other brands – such as PrettyLittleThing, Karen Millen and Coast – which is no bad thing, as it pushes new brands and looks for more market share. With strong finances and many independent retail brands struggling, further acquisitions look likely as Boohoo continues to expand.
https://m.investing.com/news/stock-market-news/stockbeat-boohoo-surges-after-sweatshop-review-gives-it-a-pass-2306956
Most encouragingly for investors, Levitt acknowledged that the company had already taken steps to correct the injustices before they were publicly exposed, a powerful defense against any accusations of bad faith. She also endorsed the analyst consensus that Boohoo’s business model doesn’t depend on abusive practices, for all that it relies on cheap labor.
That’s a relief because the business model is undeniably successful. The group is forecasting 25% revenue growth in the current fiscal year, and the performance of online-only fashion this year has surely raised the chance of an upside surprise when the company releases its interim results next Wednesday.
Mr. Lyttle also explained Boohoo’s plans for a ‘model factory’, a project we were informed had
been planned for some time. Boohoo has bought a former Vauxhall dealership site in Leicester
for the purpose. Mr. Lyttle told us that this was in part driven by a desire to prove that garments
could be manufactured for the prices that Boohoo currently pay to manufacturers with fair wages
paid to workers. Mr. Lyttle told us that it was hoped that the factory would provide a new home
for the compliance and Quality Control teams based in Leicester, as well as cutting and sewing
facilities, a packaging area and a canteen.
Mr. Lyttle also told us that Boohoo were planning to discuss the possibility of apprenticeship
schemes with the British Fashion Council.
We learned that Boohoo is in the process of incorporating more technology into its business
model. Mr. Lyttle said “In a fashion technology business in 2020, lots of pieces paper just don’t stack up”.
Adam Ogliev told us that Boohoo hopes to “make better use of technology” to understand and map its
supply chain.
Adam Ogliev has been asked to help develop various e-platforms for the company, including a
‘critical path’ platform which would allow for “tracing the whole timeline from a product being developed to
being approved by the brand to being delivered and everything in between”. This, we were told, would allow
for greater transparency and accountability.
Mr. Lyttle described an ‘order app’ that Boohoo are in the process of developing. We were told
that the app would require buyers to input detailed information at the point of placing an order,
including the name of any subcontractor. In a piece of written evidence submitted by Boohoo to
the Review, we were told,
“A main focus of the 2020 Technology Strategy has been on digitising the currently manual processes. The
drivers for this are efficiency, compliance and the need to move away from legacy and out-of-date
systems. The Mobile Order Application is a key component of this strategy. The full compliance
application ecosystem will be in place by March 2021 with applications and features currently being
implemented with a full compliance roadmap.
190
The work we are doing on the Supplier Portal to onboard the Suppliers will mean compliance is at the
heart of our order process. With a link between compliance onboarding and the order app we can validate
orders being raised against the approved supplier list”.
During our visit to Leicester, Leon Reed told us that plans were also in motion to develop a means
to monitor suppliers’ and subcontractors’ capacity. The intention is that this would help to phases
out the need to subcontract and ensure that Boohoo were not placing undue pressure on suppliers,
of the type which have historically led to a loss of visibility on who is actually making Boohoo
clothes.
https://twitter.com/TheSocialChain/status/1303672991054786562?s=19
"ALL IS FORGOTTEN, BACK TO BUSINESS"
Boohoo bounces back from scandal as cash-strapped influencers keep plugging its brands
hTTps://www.standard.co.uk/business/boohoo-prettylittlething-nasty-gal-influencers-scandal-a4517411.html
The Leicester factories scandal at online fashion giant Boohoo is likely to take as little as 5% off its sales, according to detailed social media analysis which found influencers flocking back to promote the brand in recent weeks.
Key to Boohoo's success has been its sophisticated use of Instagram and YouTube stars close to the hearts of its teenage customers. Its digital marketing through social media generally has set it apart from rivals, so search data from Google and other engines can give an accurate picture of trading patterns.
Analysts at brokerage Sandford C Bernstein today showed how Boohoo had brought vital influencers back on board after the scandal first broke, citing management's "behind-the-scenes" work to "retain and reassure" the social media stars who plug its products.
Boohoo may have also benefited from influencers' dwindling income from cash-strapped brands during Covid to persuade them to stay loyal, Bernstein said.
Research from social media marketing platform Socialbakers last month showed the number of brands working with influencers had fallen 37% on last year as brands pulled back on advertising.
"In a year when influencers are getting much smaller pay cheques than normal due to massive cuts in brand marketing budgets we are not surprised that many influencers chose not to drop Boohoo," the report says.
"After a brief period of quiet, influencers are now back in full force promoting items across the portfolio of brands."
Bernstein cited recent posts promoting Boohoo's Nasty Gal and PrettyLittleThing brands by fashion favourites such as the model Chandra (whose Lame.Cobain site has 231,000 Instagram followers) and YouTube star Sydney Crouch (with 242,000 Instagram followers).
Bernstein tracked social media followership of Boohoo's brands and found that, after a small dip after news stories last month alleged poor working practices at a Leicester supplier, the trend has now reversed for Boohoo, PrettyLittleThing and Nasty Gal.
On TikTok, followership continues rising with a particularly big spike for NastyGal in the past week.
Meanwhile, online search interest in the scandal has fallen and the #boycottboohoo hashtag use has tapered off in the past few weeks.
Bernstein analyst Aneesha Sherman said the scandal had "very limited residual social media effect - all is forgotten, back to business."
She predicted the impact of the scandal on sales would be to clip 5% off previously expected figures, with original predictions of 30% sales growth now more likely to be around 24% for 2020.
Most of that decline will be from third party platforms pulling the brand from their sites such as Zalando, Asos and Next, which Boohoo uses primarily to drive brand awaren
"ALL IS FORGOTTEN, BACK TO BUSINESS"
Boohoo bounces back from scandal as cash-strapped influencers keep plugging its brands
hTTps://www.standard.co.uk/business/boohoo-prettylittlething-nasty-gal-influencers-scandal-a4517411.html
The Leicester factories scandal at online fashion giant Boohoo is likely to take as little as 5% off its sales, according to detailed social media analysis which found influencers flocking back to promote the brand in recent weeks.
Key to Boohoo's success has been its sophisticated use of Instagram and YouTube stars close to the hearts of its teenage customers. Its digital marketing through social media generally has set it apart from rivals, so search data from Google and other engines can give an accurate picture of trading patterns.
Analysts at brokerage Sandford C Bernstein today showed how Boohoo had brought vital influencers back on board after the scandal first broke, citing management's "behind-the-scenes" work to "retain and reassure" the social media stars who plug its products.
Boohoo may have also benefited from influencers' dwindling income from cash-strapped brands during Covid to persuade them to stay loyal, Bernstein said.
Research from social media marketing platform Socialbakers last month showed the number of brands working with influencers had fallen 37% on last year as brands pulled back on advertising.
"In a year when influencers are getting much smaller pay cheques than normal due to massive cuts in brand marketing budgets we are not surprised that many influencers chose not to drop Boohoo," the report says.
"After a brief period of quiet, influencers are now back in full force promoting items across the portfolio of brands."
Bernstein cited recent posts promoting Boohoo's Nasty Gal and PrettyLittleThing brands by fashion favourites such as the model Chandra (whose Lame.Cobain site has 231,000 Instagram followers) and YouTube star Sydney Crouch (with 242,000 Instagram followers).
Bernstein tracked social media followership of Boohoo's brands and found that, after a small dip after news stories last month alleged poor working practices at a Leicester supplier, the trend has now reversed for Boohoo, PrettyLittleThing and Nasty Gal.
On TikTok, followership continues rising with a particularly big spike for NastyGal in the past week.
Meanwhile, online search interest in the scandal has fallen and the #boycottboohoo hashtag use has tapered off in the past few weeks.
Bernstein analyst Aneesha Sherman said the scandal had "very limited residual social media effect - all is forgotten, back to business."
She predicted the impact of the scandal on sales would be to clip 5% off previously expected figures, with original predictions of 30% sales growth now more likely to be around 24% for 2020.
Most of that decline will be from third party platforms pulling the brand from their sites such as Zalando, Asos and Next, which Boohoo uses primarily to drive brand awaren
https://mol.im/a/8553403
A HSE spokesman said: 'We're continuing to find high levels of compliance with health and safety law, and the majority of businesses are either Covid-Secure or taking the adequate steps to achieve this, reflecting the national picture.
'HSE inspectors are continuing to carry out targeted spot inspections and following up concerns as they arise.
'Inspectors will take appropriate action to ensure standards, both for the current Covid-19 pandemic and other health and safety matters, reach an acceptable standard no matter what area of the country they are found.'
She added: 'In Leicester, we continue to operate with well-established local multi-agency partnerships.'
The Gangmasters and Labour Abuse Authority (GLAA) has been investigating any potential human trafficking or modern slavery abuses, as part of the multi-agency inspections.
In a statement earlier this month, the GLAA said: 'No enforcement has been used during the visits and officers have not at this stage identified any offences under the Modern Slavery Act.'
Latest data from NHS Digital showed Leicester's seven-day infection rate is at 64 cases per 100,000.
Boohoo needs to SUE THE TIMES for libel...
The newspaper has agreed a settlement which Mr Jaswal said he will donate to charity.
But Aneesha Sherman, a retail analyst at research firm Bernstein, said the Boohoo allegations would not dampen long-term sales, provided the company is seen to take action after its investigation into its supply chain.
"Boohoo’s customers are generally driven more by price, choice, and newness."
Two of the BIGGEST BANKS in the world say BUY BOOHOO:
UK authorities have found no evidence of modern slavery offences in the first round of inspections on Boohoo subcontractors in Leicester, underlining the challenge of tackling allegations about the city’s illegal garment factories.
Over the past week seven separate government agencies visited nine premises in Leicester, prompted by allegations about illegal work practices that Boohoo and Priti Patel, home secretary, have described as “appalling”.?.?.?.?
[I]n spite of the concerted government effort to uncover abuses, the Gangmasters and Labour Abuse Authority (GLAA) has admitted that “no enforcement has been used during the visits”. “Officers have not at this stage identified any offences under the Modern Slavery Act,” the agency said.
Reports from Leicester over the past few years have described a diffusion of seamsters and embroiderers flitting between undocumented jobs in places you’d struggle to class as factories, so no evidence of illegal working practices from nine site checks might not be the human rights slam-dunk it first appears. It is, nevertheless, a headline that’s not outright negative. Anyone keen to claim that ESG scrutiny is all just virtue signalling by the Cult of Woke now has a convenient platform, of sorts.
Bring out the “buy” recommendations, starting with HSBC:
While the suppliers implicated in the Sunday Times report have been terminated by Boohoo for breaching its code of conduct on record-keeping and sub-contracting production, there is thus far no evidence to support claims that workers were paid GBP3.50 per hour by these suppliers versus the UK National Living Wage of GBP8.20-8.72 for workers aged 21 or over. We note the following:
? The UK short-lead-time supply chain is a sustainable competitive advantage, further supported by the group’s diversification into international markets, which now account for 60% of CoGS (versus c30% in last three years), including 40% in Asia and 20% in Europe. We expect reliance on UK supply as a percentage of CoGS to continue to diminish over the medium to long term.
? We believe any impact on demand will be limited. Boohoo targets younger and less affluent customers who are influenced by social media. It has proactively reached out to many ‘influencers’ to reassure them in light of the situation. We believe that negative influencer commentary has been limited to date and that Boohoo’s customers are generally driven more by price, choice, and newness.
500p target price and Buy rating (unchanged): Post a strong Q1 update?.?.?. we leave our FY20-22e earnings unchanged as we expect limited impact from a cost or demand perspective. Our unchanged APV-derived target price of 500p implies c122% upside from current levels and a CY21e EV/sales ratio of 3.10x (versus a 1.53x current and a five-year historical one-year forward EV/sales m
Sales growth at Boohoo might take a small hit in the short term, but the experience of other fashion brands that were previously caught up in ethical trading scandals including Primark, H&M and C&A shows that consumers are easy to forget and forgive. Tellingly, a #boycottboohoo campaign has FAILED to gain traction on social media.
It is also worth noting that Boohoo already generates nearly half of its sales in overseas markets – with the US and Europe key. News surrounding the working conditions in the Leicester factories has been fairly sparse outside the UK, and hence overseas sales growth should remain firm going forward.
Not exactly high is it...
https://shorttracker.co.uk/company/JE00BG6L7297/
Two of the BIGGEST BANKS in the world say BUY BOOHOO:
UK authorities have found no evidence of modern slavery offences in the first round of inspections on Boohoo subcontractors in Leicester, underlining the challenge of tackling allegations about the city’s illegal garment factories.
Over the past week seven separate government agencies visited nine premises in Leicester, prompted by allegations about illegal work practices that Boohoo and Priti Patel, home secretary, have described as “appalling”.?.?.?.?
[I]n spite of the concerted government effort to uncover abuses, the Gangmasters and Labour Abuse Authority (GLAA) has admitted that “no enforcement has been used during the visits”. “Officers have not at this stage identified any offences under the Modern Slavery Act,” the agency said.
Reports from Leicester over the past few years have described a diffusion of seamsters and embroiderers flitting between undocumented jobs in places you’d struggle to class as factories, so no evidence of illegal working practices from nine site checks might not be the human rights slam-dunk it first appears. It is, nevertheless, a headline that’s not outright negative. Anyone keen to claim that ESG scrutiny is all just virtue signalling by the Cult of Woke now has a convenient platform, of sorts.
Bring out the “buy” recommendations, starting with HSBC:
While the suppliers implicated in the Sunday Times report have been terminated by Boohoo for breaching its code of conduct on record-keeping and sub-contracting production, there is thus far no evidence to support claims that workers were paid GBP3.50 per hour by these suppliers versus the UK National Living Wage of GBP8.20-8.72 for workers aged 21 or over. We note the following:
? The UK short-lead-time supply chain is a sustainable competitive advantage, further supported by the group’s diversification into international markets, which now account for 60% of CoGS (versus c30% in last three years), including 40% in Asia and 20% in Europe. We expect reliance on UK supply as a percentage of CoGS to continue to diminish over the medium to long term.
? We believe any impact on demand will be limited. Boohoo targets younger and less affluent customers who are influenced by social media. It has proactively reached out to many ‘influencers’ to reassure them in light of the situation. We believe that negative influencer commentary has been limited to date and that Boohoo’s customers are generally driven more by price, choice, and newness.
500p target price and Buy rating (unchanged): Post a strong Q1 update?.?.?. we leave our FY20-22e earnings unchanged as we expect limited impact from a cost or demand perspective. Our unchanged APV-derived target price of 500p implies c122% upside from current levels and a CY21e EV/sales ratio of 3.10x (versus a 1.53x current and a five-year historical one-year forward EV/sales multiple of 2.60x). In our view, the competitive advantage of the group’s business
https://www.lse.co.uk/news/live-markets-boohoos-bounceback-damage-control-working-lhcafuysxr1rzj6.html
BOOHOO'S BOUNCEBACK: DAMAGE CONTROL WORKING? (1128 GMT)
Lots of questions around the stock's massive bounceback.
One of the reason the stock is making such a comeback is that many believe the young clients
of the cloth retailer won't be deterred by the allegations of dire working conditions at some of
Boohoo suppliers.
Here's the take of HSBC's Paul Rossington, co-head European consumer retail research
"We believe any impact on demand will be limited. Boohoo targets younger and less affluent
customers who are influenced by social media. It has proactively reached out to many
'influencers' to reassure them in light of the situation. We believe that negative influencer
commentary has been limited to date and that Boohoo's customers are generally driven more by
price, choice, and newness".
Also, as a Reuters story flagged yesterday, sell-side analysts seem to be sticking to their
"buy" tag on the stocks even if as put by Peel Hunt analyst John Stevenson, "ESG is a journey
for Boohoo".
Shorters well and truly f***** tomorrow!
https://www.instagram.com/p/CCZSkEXhyLV/?utm_source=ig_web_copy_link
https://www.ft.com/content/6839e4f6-2afc-4061-a57a-5081dbb7d323
Multiple Boohoo inspections find no modern slavery offences
Lack of enforcement shows challenge in tackling allegations of supply chain issues
Boohoo announced a £10m investment to ‘eradicate supply chain malpractice’, which John Lyttle, chief executive, says is intended ‘to show how seriously we are taking the issue’ © Marco Kesseler/FT
Patricia Nilsson, Alex Barker, Laura Hughes and Jonathan Eley 2 HOURS AGO
7
UK authorities have found no evidence of modern slavery offences in the first round of inspections on Boohoo subcontractors in Leicester, underlining the challenge of tackling allegations about the city’s illegal garment factories.
Over the past week seven separate government agencies visited nine premises in Leicester, prompted by allegations about illegal work practices that Boohoo and Priti Patel, home secretary, have described as “appalling”.
The fast-fashion retailer has lost more than a third of its market value since a Sunday Times investigation exposed longstanding concerns about textile workers in Leicester being paid less than the minimum wage. Ministers also raised fears the cramped, unsafe garment factories helped make the city a hotspot for coronavirus.
But in spite of the concerted government effort to uncover abuses, the Gangmasters and Labour Abuse Authority has admitted that “no enforcement has been used during the visits”. “Officers have not at this stage identified any offences under the Modern Slavery Act,” the agency said.
The National Crime Agency, which also announced the visits to textile factories, said it would not give a “running commentary” on the investigation, but added the “visits are likely to continue”. One person briefed on the investigations said authorities were reluctant to publish further details over fears the sweatshops could move out of the city.
Boohoo on Wednesday attempted to shore up investor confidence by launching an independent review of its UK supply chain following allegations that left its board “shocked and appalled”.
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Boohoo: the crying game Premium
Alison Levitt, a senior lawyer and former principal legal adviser to the Director of Public Prosecutions, will lead the investigation into whether Boohoo suppliers have complied with regulations on wages and working practices.
The company also announced a £10m