Member Info for danl90

300 is inbound on results as I feel confident the divi will be restored

On the disposal the other day does anyone know the net debt impact? Did we get any cash or just a promise?

News in - squiggly line to carry on being squiggly!

I’ve said before they have two very deep pocketed PE firms backing them. PE love M&A so if they are serious they are likely cash bidding

This could be good though as £300m leaving Shein, huge headwinds atm for them with shipping costs tripling and Biden agreeing not to soften the stance on China (people need to stand up to the human rights violations) their medium term could be sticky

Adding to that repositioning and growing topshop? It’s a big messy. Also they have only been successful themselves over last 12 months (if that) so there’s no saying they have the skills for this

Personally I wouldn’t do own brand as I don’t think the cross over works as it does with high end brands (chanel bags and Chanel make up etc)

I think the risk of pumping out lots of crap make up cheap as possible risks people running tired of the brand and even high end saw this ie you can’t buy Chanel make up or perfume in a store. Burberry bought back its license early as they didn’t like how popular it’s perfume was getting so took back control, YSL pumped their prices to limit growth

So for me I’d buy a make up brand that is separate, has its own customers and identity but then help (via marketing) consumers see a connection as a group

Also to get the shares needing a rocket some M&A and multiple arbitrage (gods greatest ever invention) would be very welcome

I’m not sure they should do PLT make up. I think they should buy a decent niche type brand and leverage that

To the point where it should be a fully stand alone proposition but an ability to x-sell

@rag yeah we do a small part of third party (it’s minimal like <1% Rev they said a few years back) but I think that might have been intentional as why build up a third party and have to claw back when we get an own brand? Also manufacturing make up isn’t a core skill so when it’s not a key area it’s better just to do third party in case it didn’t work

There a £70 set of curly hair things on there (look scary) and apparently 75 people viewed today. I think that shows people clearly want more from PLT

Not a market I know well but there must be more make up targets? US must have tonnes! So it could even fire up growth there

Yeah I just think it’s an easy win. PLT could really make a make up brand rocket

Also if it’s a higher margin we might be able to hide any clothing headwinds in the higher margin

I actually think boo will have to pass the 2% tax to suppliers or suffer.

Consumers buy a lot more products at £19.99 than £20.01

Same goes for round £ amounts. Unless they do it America style ie the tax goes on at the end but there might be regulation around this (think vat has to be included for example - might be wrong)

I had a think on this earlier today and while it seems topshop is lost I think Boo should go for a make up business

I ran some rough figures and if PLT’s 17million customers each bought two lipsticks a year at £4 that’s £130m

- it’s more site engagement
- make up is higher margin (also less “dead stock” issue)
- when a customer pays £10 next day delivery sub why would they not get make up from boo as well?
- PLT could make a brand cool
- M&A likely to be cheaper and less competitive than clothing (topshop has surprised all I think)
- can easily pass this through our current warehouse
- we already do bits so clearly works

So that’s my idea for the day

Ideally I’d get topshop/ topman for £250m and £100m on a decent make up brand (or brand we could get a high end one for KM)

I just think the numbers get big, FAST

Ok cooler

Market cap is c. £4 billion and we have cash of just under £400m so how much of a divi do you want to pay?

Knock out the £200m we raised for M&A you've £200m left - you really think a 5p divi will make this go to £4?

This is money saying it’s the third most visited fashion site after Next and Asos

Shein is seen as front runner!

@cooler no it wouldn’t as webba said it would be management admitting “we can’t think of a better way to grow this business. It’s a shame as you’re all invested here for growth but shows over”

Here a 1p divi and a £1.50 fall in share price

£198m of it was raised in Jun-20 for M&A

So not years and it has a specific purpose

Only if this cost isn’t passed to customers

If all that happens is all prices rise 2% there is 0 issue

Fuel duty goes up and down all the time and shell doesn’t sell less petrol

I know it’s nothing like boo but a “biotech” business choosing Nasdaq over London

Just thought I’d add some salt to wounds of our underwhelming share price

@rag you treating yourself? Ha

Unfortunately they don’t seem to be selling as they have been on a few weeks now!

@rag possible yeah but if you think prices have to go up and can go up then you've no reason to worry about margin, as you'd just pass it on

I think the reason analysts worry about margin is they possibly (and it might be that we don't get fashion - yellow is yellow to me - but to your patone point the other day I did find this which you might order https://www.boohoo.com/pantone-acid-washed-oversized-hoodie/FZZ04041.html?color=111) but agree that boo needs to be the cheapest or one of the cheapest operators so there is limited to no movement on price uplift - but after all we are accountants. But holds true if we thought they could raise prices costs wouldn't worry me

Also i'm slightly confused but cutting costs from the fabric and suffering return costs which erodes margin (which I'd agree with) seems to be a different point to the cost pressures you mentioned in the post before ("costs needed to move BH towards growth, eg importing, re sourcing, marketing, people, systems.")

I guess i'd see reducing fabric quality as a controllable cost which would be down to boo making an active decision where as the second lot are broadly market driven and outside of our control

@rag sorry the £5 target i said was based on my personal target but on a growth valuation you can see a value above this (I did mention this at the time)

Re billboards agree although i ended up watching the Witcher again on netflix as no one has changed the billboard near me since Mar-20 (the council pedestrianized the street) and I kept looking at it and given this lockdown i'm back on it! ha

@mudis i hope you're right re tik tok. Makes me dislike the younger generation! I'm glad tik tok wasn't about when i was younger i don't dance anyway never mind posting it online!

@mudis tbh i don't play consoles so i only know of twitch from my friends but I think boohooman was advertising in games recently (maybe you know better?). But i agree either we move boo branding or buy topshop. Short term buy topshop but where does that leave boo long term? Long term buy a china, south american brand and reposition boo

@rag yeah i understand but the point the other week was that I mentioned boo will struggle to raise prices as the products and consumers are price sensitive therefore any increased spending means margin pressure. If i remember you were of the view that boo can just raise prices so even considering your point below there shouldn't be margin pressure

Worrying about margin pressure is only a concern when you can't raise price otherwise pass it through and the margin remains the same