Member Info for danl90

Short term (if boo acquire and a sensible price is paid) this should be great as KM gives proven track record of moving bricks to clicks. Also management can talk up synergies for GM. New customers etc

Short term (if boo overpays) negative

Short term (boo don’t get) likely negative but more so depends who buys it

So depends where you sit. Short term seller? Buy it. Long term? Money better spent strengthening the boohoo brand

@Dan Why is asking how you decided boo and what to pay patronising? That’s literally what this board is all about

We are all here because we think boo is a good investment and atm we all think it’s undervalued hence we all spent money buying shares. So you contribute to that but actually saying how you got here is patronising?

Or is it that your skills are better served trying to guess how TCM is and trying to shout at shorters? After all that’s 95% of your contribution

So talk us through your “method”

And why buy boo at the price you paid? How do you know you got good value?

@Dan1 just because you bought a stock and it went the way you wanted it to doesn’t meant you’re investing.

Do you have an idea what you paid for when you bought it?

We’ve figured out in the past you’re another who is buying this “because it was £4 so might be £4 again”

26% in a few weeks is good but betting red or black on the roulette wheel is 100% return so you’ve underperformed a market you at least understand

And yet you’re “investing” your money?

Babyboo is already a great fast fashion brand

Small but popular following

It seems a lot of the “investors” here don’t understand

Value
Our business model
Value drivers
Our offering
Competitors
And a tonne more

All spinning the roulette wheel

Sorry all I seem to be in a bad mood today!

They wouldn’t buy the shops. Never have bought shops but have successfully turned high st brands to online (KM)

Topshop would then be within our business model

Reading this really does make you think there isn’t much need to buy Topshop

Selfishly I want boo to buy it as we will see an increase in share price but medium to longer term £200m to pay for a brand that isn’t as attractive to the Tik Tok generation as we all think is the wrong strategy. We will more than double that £200m investment realigning the brand

I think save the £200m and improve the boohoo offering. £200m could get us a slick next or couple of day delivery service in the US and buy a tonne of social media advertising.

Those two factors are what will win the day when the world is back to normal. People will want dresses NOW and won’t wait the 3 weeks it takes Shein to deliver. If boo is still serving US in 8 - 10 business days we don’t have a huge advantage especially given Shein is better on Tik Tok and cheaper

Long term £200m better spent on US and South American distribution. Short term I’d buy Topshop and sell my shares

Guess you all need to decide which investor you are

@incerno and others I absolutely agree with your comments I’m just saying it’s silly how anyone who attempts even a balanced view gets shot to bits

And just to say bad PR did take 50% of the share price but if boo were to miss sales figures it would be severely worse

I think results are going to be fine and the shares will re-rate as the market is comforted that boo has posted another stellar year with all the outside noise

Why attack moose? He’s 100% correct to question the returns rate.

Just because he is considering something other than insane upside you all call this deramping!

Loads going out is great but loads coming back needs to be considered

You all act like there are absolutely no obstacles, down sides or risks. You all clearly don’t understand the business and are just spinning the roulette wheel because “it was once £4 it will be £4 again”

Selling via asos and amazon is fine. We want to be on there as it’s prime internet real estate. At the most it was ever 2% of revenue but a great way to spread the brands to new customers for example asos is a lot better known in Europe than Boo so we can win new customers

No stores from Topshop deal although if we have to have one or two flagships I’d be fine with that

I think results will be bang inline and nothing more. The continued lockdown means we aren’t selling dresses and annoyingly Tier 4 for the whole country when both PLT and boo have just launched gym wear is annoying

Re Boo I think this brand needs to reposition. The wolf cindy edit was a damp squid and it’s still on the shelf! PLT do a lot of colabs but the stuff flys off the shelf. The Demi Rose edit was gone in seconds also Saweetie and Doja Cat performed well. The lil Kim stuff now appears to be mostly sold (particularly at curve and larger sizes so we are hitting different target audiences)

KM will shoot the lights out I’m sure so I’m excited for this

I think U.K. and USA will both be inline but I worry for ROE and ROW given rise of Shein and how they have dominated Tik Tok

As I’ve said before though I’ve no worry for Shein longer term as they have over traded and sell crap (their insta is full of crap comments and angry customers - they delete the comments) also I think Shein will be exposed for using the China cotton and other issues hence it won’t reveal its supply chain

I think Brexit deal is good for boo as no tariffs to trade into Europe so this is positive

Asos report the day before so hopefully this sets the stall for a big lift on 14th

Agree this is relevant. If investors view boo similar to THG then we will get the valuation gain

Boo doesn’t sell itself as a fashion company. We are an online fast fashion retailer

Point 4 from the last investor presentation and this is linked to Charlie’s point

? Acquisition and integration of the Oasis and Warehouse brands, complementary additions to the group’s
scalable, multi-brand platform

This is what investors value

On another upside I wonder if just dropping $350m means THG won’t be in for Topshop? Maybe there is good news on the way

Boo isn’t listed in Germany? It’s only listed in London so anyone any idea what the german links are?

@rag all of that I absolutely agree with. There are lots of example where PE ruin businesses but luckily the days of asset stripping PE are no behind us and now PE are a lot more aware (but no one gets its right all the time)

But like it or not the investor who we need to be buying are looking at these things and my point here with KM is that it’s a solid example of boo taking something that in theory shouldn’t transform into boo and pulling it off in spectacular fashion. So now when we get topshop investor won’t balk and go “I wonder if they can make that work with out stores” and “£200m is a lot of cash” instead now they can look and go “they did it with KM and that’s as far away from boo as you can be. I’m comfortable they can do it with topshop”

Good example again is JD. Just announced a huge US acquisition. Usually the market drops on an acquisition as funds being cautious sell out until they understand what you’re buying (funds might like your business but don’t know what it is your buying) but as JD had made such success of their prior US acquisition the market bought heavy into the news of this one. As now JD are trusted to make success of their acquisition. It’s now part of their equity story

Or

@rag yeah agree it’s certainly a tough sector!

Also direct from Carol at the last investor presentation (around the 50mins Mark)

KM - make more affordable so broaden customer appeal so the other brand customers can flow to KM - this is our keep customers for longer and increase share of wallet KPIs
KM - used to stock 500 styles a season this is 1,500 and 150 added per week - driving to our test and repeat and scalable platform
KM - all online - driving to our story that we can grow all online via our scalable platform
KM - lead time cut from 6 - 8 months to 6 - 8 weeks! Wowza

So basically taking a different business and turning it into our equity story

Seems she is listening to the accountants!

@rag really easy example to see the power equity story is comparing boo to JD. JD shares today are 840p and adj EPS is 34p so every £1 it makes is worth £24 of value

Boo is something like x35 (today although we all agree this is beat down from recent events).

So why is £1 of boo worth more? It’s not just growth JD revenue has tripled since 2017

So a share price is profit x multiple

When you work in the business you’re seeing one side of the coin the profit angle but driving the other side is what the Exec level are doing hence why Carol will be watching the KPIs

It’s more difficult for a business to growth profits from £100m to £200m but if you can build the right story you can make someone pay x12 for a business you paid x6 for a while back (this is mainly what PE do)

So while you seem to view me as an accountant (which I trained in 10 years ago) what I do now is all the above. And it’s what fund managers do and they are the guys we need to be buying this stock.

If you want boo to wholesale or be more like the businesses you work in you should be selling this stock and shorting it. As one the basis of those businesses this would be insanely overvalued

JD Sports tripled revenue over last three years traded on x25 PE. So insane growth yet boo trades on x35 PE so something has to be different elsewhere and that’s our equity story

It’s more optics that’s will create value. KM won’t be a $1bill turnover business but if it put out huge growth via all online it proves the concept point

Atm boo doing M&A is great on paper but we haven’t a huge track record. Some investors might view nasty gal as a one -off but if we can do the same with KM which arguably is nothing like boohoo (£900 coat vs £50 coats) then it cements the equity story. It then means when we get topshop and take it all online and have no stores or wholesale no one will panic as they will go “boo can do that they have track record” it also will likely mean investor will buy in a head of topshop results as they will confidence. Rather than if we had no track record investors might wait till we have had topshop for a while to see if we make a success of it

Once again it’s not about the size of your revenues and profits it’s about your equity story and how you position

Yeah I disagree that admins are usually a fire sale. At SME businesses yes but businesses of this size it isn’t. Just roughly guessing but the Deloitte team in London working on this will be +100 heads. Don’t need that many to hang a for sale sign

If the offers aren’t good enough admin will run this for cash for a while. As long as they can trade it profitability they are legally allowed to do so

This is why they can set the floor with the £200m price tag as as you say they probably have a good view on the level of cash shipping SS21 would create. If offers are less than that they will not sell the brands but run for cash