Member Info for danl90

@har I’m afraid I don’t have a crystal ball to answer that question (or I’d be a lot richer than I am now!). At the Sep 30th update the board said

“Our medium term guidance for 25% sales growth per annum and a 10% adjusted EBITDA margin remains unchanged.”

So that best we have. This also dovetails to why wholesale doesn’t fit as we can’t continue to ensure we grow at 20% each year as we don’t control the end of the sales channel ie do you think the end high street store could cope with boo (as group) shoving 20% more stock at them each year when we all seem to agree high street is dead? I can’t see it. You’d have stock piled high in dusty US department stores and that hardly fits our brand image

Nothing until after the MP interview. Would be very bad positioning to talk about record sales and volume a handful of days before you sit in front of MPs about the environment

Hi all. @people correctly raised this morning that I’ve been asking questions of a few people so it might be a good idea if we all post a few questions we’d all like answers to and then we can discuss them (I’ll even throw my 50p in). Not sure how we’d keep it organised ha

@people. Fully get the intention of this post and it’s not missed. I didn’t mean to back him into a corner it was just he’d wiggled on it so many times (I will respond to his post). I didn’t want any one to feel pushed but as I’ve said random claims of “it’s undervalued” with out being able to say so is just ramping (even if I agree with the direction). Coupled then with saying “it’s impossible to value” seemed odd as he seemed to have enough of a grip to spend money buying shares! But we have taken steps to make peace so we won’t cover old ground

I do think generally on this board there is a huge misunderstand of value smaller less profitable businesses can be worth way more than bigger more profitable business (Tesla vs Toyota for example). How do you think for example a private equity business values a business it buys when that business isn’t listed?

I’m happy to give answer to my questions I kind of have already but happy to lay it one place so it can be discussed.

You should pick up some glencore if you want a bargain. Investor presentation today is great news along with the insight into dividends moving forward!

Last time copper was this price Glen was £3.50!

We raised the £200m purely for M&A. If we don't spend it on M&A investors will be annoyed they were told an "equity story" that didn't materialise. But I agree re your point re bidding up the price. My worry is Hut go for it as their roots are clothing but now its myprotein and makeup so clothes could be a third leg for them also their Integrity platform (or whatever the name it begins with an I) means they can make the same deal as us ie just buy the brand and roll online

@P yeah you're partly correct in that if you are materially away from your expectation for a period you have to inform the market but there is some play in this as for example if first month of trading in a new year is down 10% but you know next month will be up 10% you can take the view you don't need to issue a profit warning one month into a new year. Otherwise big construction type businesses that see revenue peak and tough month on month would be RNS'ing constantly. Obviously if it's month 11 and you're 15% down you should be saying something

Black Friday is a single day of a year so it's single impact won't be material to the whole year so they can choose in relation to this topic to update or not. That's why last years update had no figures as there are additional rules if you post figures.

You're right re expectations but atm our shares look cheap so I think the market might be pricing in an expectation we don't hit our figures therefore I think some positive noise of hitting or beating (even marginal) will be well received. Obvs this part is just a view and that is the reason some buy and sell each day

I think the lack of update reflects the meeting on the 16th or whenever. As it never makes sense to sit in front of MPs after bragging about big profits etc

I think this is a tactical decision

Because they warned pre-lockdown they thought they would lose £900m in sale so the market priced in for £900m

So this is actually a great result for them and why we might be selling off but tbh I think there will always be a primark shopper and they will have just waiting for the stores to open or pop in up to Christmas

I had a think about this this morning when out for a walk and conversely to my post last night I think the real reason why there is no black friday update is the upcoming mp interview. MK can't sit in front of mps and talk about sustainability if he says a few days before we blew the lights out by selling dresses as low at 15p

It would be madness and make it a bloody tough interview

Better to keep the figures close to our chest and get through the interview. Results in Jan with renewed market optimism will help the share price

Hq is Dale street but we are registered in Jersey for tax and Dom status etc

Are you guys sure? Did none of you read Levitts description of her interview with him? It was a car crash! I’m actually nervous

@ihalli - what you’re proposing is illegal. A government can’t help its own businesses it goes against trade rules and we are still bound by some of the EU ones even after we leave

Also boo is already based in Jersey. But you know that as you did you research went you “span the roulette wheel” sorry I mean “invested”

It’s Chinese btw. Big in the US and South America
Surprisingly not big in China!

I think they will gather pace but as rag has said the quality of their offering and delay in delivery will hurt longer term. This is 100000% more reason why we need US distribution capacity

They don’t really have an “identity” either it’s just every clothing item under the sun but insanely cheap (and boo is cheap but not that cheap!) but I think customers over time will lose interest in a lack of identity and Shein won’t have that “go to” audience ie you “go to PLT for a dress” you “go to misspap for edgy influencer vibe” (I'm being vague here) but Shein is just a mess in this regard

I think Shein is like Aldi. It’s all insanely cheap and that’s fine the world needs that, there is a market. But really the sauces are bland, the German version of Mars bars just aren’t right and when you’re stood behind Sharon from the council estate and her pink ponytail you realise this isn’t where you want to be!

Don’t get me wrong PLT wouldn’t be Waitrose! ;)

@bruce I didn’t mention an obscure outfit it was literally mentioned in the first post in the thread! Shein is the topic of conversation.

But yeah the tax loop needs to close. Tbh likely Shein and China for that matter will take over the world as Biden will revert to Obama policy and let China cheat the rules the rest of world play by!

Sorry ignore me! Ha

I think you’ve got confused. Shein gets a tax advantage in terms of not having to pay U.K. customs. It was a trade incentive set up years ago by U.K. gov to Chinese companies but now companies like Shein are benefitting when they are clearly huge and don’t need the incentive.

The U.K. gov will close the allowance.

I didn’t lump them together the first post was about Shein so I was just sticking with the topic

If some people had a brain they’d be dangerous!

Ms Levitt didn’t investigate Shein she investigated a business called Boohoo. They are separate businesses

Follow?

Apparently the tax advantage they have atm will be closed soon.

Also I think when it’s exposed that these clothes are made in concentration camps then sales will fall away.

@Dan - so just to understand I spend the last few days explain to rag why Boo deserve a higher multiple rating than asos

I then explain to you all the equity story and why the platform and data management means we should be looked at like amazon rather than Next

And you think I’m de ramping? Did you start investing this year? Ever worked in financial services? Or are you just “having a go” with a bit of spare cash?

My view is either
1) it wasn't great as an individual day. Yeah trading is no doubt up on PY due to lockdown etc but I think black Friday while in the long term will pay dividends the actual £ impact of selling at 99% won't have been great. It clearly worked though as "wild Wednesday" was flop as shopper filled their wardrobes with boo brands and will be repeat customers once the "scalable platform" and marketing engine gets into them so to be clear I have no issue with it
2) we are very close to Topshop acq and actually it isn't worth updating the market on this news as it will come in one RNS

I certainly feel like it is conscious decision and there is a strategy to it. My mind tells me its the former but I'm also confident it's the latter