Member Info for danl90

On the growth I think this just needs to be better explained

Steve on the call said Dermstore isn’t a growth asset (it’s a margin play). When you take out dermstore and also the vertical integration assets the growth rate is the same as before

Also consider that 25% was set at ipo and those ipo forecasts were beat by £500m! So you can roll back some of that over performance

The hedging is done naturally everywhere except Asia but the plan is that this will be fine as they develop local nutrition manufacturing

They obviously use financial tools as much as possible but the utopia is the natural hedge and will be done

I think a better plan for short term would be telling us that M&A could be back on with current cash

They might have a plan but it's the 18 months it takes to get it up and running!

Also the new systems you need to do this (which they don't have)

Also pushing test and repeat to mexico is unproven

Ingenuity is the best route for boohoo but they have too much pride

Difficult to see a funding structure that would make this work in my view

Never say never of course

But with the macro headwinds I can't see a private equity or debt funder wanting to take the bet. How would you mode heavy debt repayments alongside capex? Especially with falling/ slowing revenues?

Trade would be a better option but who?

Well thats obviously rubbish

Cash/ debt is the bridge

On the chatting to management point. Investors can and do

It is only if they are given material information that they are locked up. Jupiter could have a chat to management and say “what’s the plan for the US” and boohoo can explain. Jupiter can even suggest things

The chances are Jupiter have asked some questions and don’t like the answers

Re Jupiter selling as they might be taken over is rubbish. Jupiter is a fund manager. It makes money from managing other peoples money so the “investment” in boohoo isn’t actually their money but their clients

Also it’s hilarious how many still think the London office was a good idea. Omg what if it’s gone up 10%! Amazing!

Well that’s £7m gain that you’ll never gain as you won’t sell it (so appreciation is irrelevant) but oh yeah negative sales in US has whipped off a few hundred million so seems a great trade

Exactly it’s a joke. I mean the cash will be spent on capex so it’s hardly ours

Wonder what this means for M&A it appears there will be none for a while which isn’t great

@hereshopin agree but it’s fair to say they overpaid for some

I mean Dermstore was a bit of a joke tbh but wasn’t my cash as wasn’t invested at the time so I’m indifferent

Cult was a big cheque too but that’s a growth platform

Well this is grim but here’s how you can see it from here

Current market cap is £1.95bln less cash £530m (for the idiots yesterday who couldn’t work out the cash balance)

So the businesses are worth £1.5bln give or take

Ingenuity will do MINIMUM £110m commerce revenue next year and be on this is a ARR

At the 60% EBITDA stated by management that’s £60-65m EBITDA

Let’s assume ingenuity is a nice business and not something insane (not my view but for illustration) and 12x is applied. That means ingenuity is a £720m business

So £1.9bln less cash and less ingenuity means beauty and nutrition are worth £700m!

That’s madness tbh

I never spoke to you at first richie. You jumped in about something and we learn you've nothing but air in that head of yours

@euro glorifying the ramper or are you an "investor"?

richie i make loads of apt points but it turns out the rest of us are talking about boohoo 2021/ 22 and you're 12-18 months behind

Getting stock from china was a problem 12 months ago

No wonder you're been stumped everytime someone raises a point

Easier for you to say "deramper" and move on as otherwise you get made to look silly

I'm not a troll on boohoo I own shares (regretting atm) but I'm a realist. In the UK it's a fantastic business but management have Sh*t the bed re overseas

The point isn't internal tbh P it's more the payment of hermes etc to bring it back

Also your point re shoes and clothes isn't always true as I'd return shoes that have been tried on as they get that crease across the front!

@LDLD boohoo using ingenuity and THG poor update aren’t related. I can lesse a shop in USA to sell to customer if my aim is to sell shoes. That the value of the building then falls is irrelevant to me as I just want to sell shoes (this is quite obvious tbh)

THG poor update is due to margin pressure of whey protein it’s not that ingenuity had a poor update (not that that matters to boohoo anyway as all boohoo want to do is “lease the shop”

This is what ingenuity allows you to do. Lease a shop front anywhere in the world

Hope this helps

But for all you now have direct proof of how dumb Richie is! It’s here front and centre

He never answered any points as it shows his understanding of boohoo is shocking. He’s barking up the wrong tree

Just because he shouts “it’s going up” doesn’t make him worth listening to. Guys clueless and here’s the thread to show you

Doesn’t matter. There’s a buyer for all things

Point is is that’s shoe zone customer won’t travel twice as far to return a pair of £10 shoes if the double bus fare is £10 also. Easier just to drop off at a Hermes depot or Royal Mail etc when you’re doing your supermarket shop

Just give any example in detail where bigger store means bigger catchment. As I say works for something like bichester village or Burberry but not a shoe store

It’s common sense!

So what do shoes profits look like when you add in £30m plus returns?

Card and Shoe never wanted to do online. They have both fought it for years but now realise they have to so now they will end up “stuck in the middle” as they try to be both

In theory as long as the % of returns stays flat yoy then no you don’t care as that will be an equal weighting with revenue so a flat impact

With boohoo it’s elevated once and cause and issue but all through covid it depressed and created a windfall

Shoe won’t disclose the returns figure. But the story from Zeus (and the bit you hadn’t clocked on to) is that only works with 400 stores. But now 50% at least will be expensive online returns

So you’re excited on a chat that in reality isn’t holding true and somehow feel great?

Odd

Wait you’ve only just figured this out! And you think people on this board are “misleading”

Is this why the other week you were saying getting stock from China was the biggest issue and completely missed the point about shipping to US? They brought stock forward and guess what. People overseas didn’t want it as they have to wait so long for delivery

This explains so much!

Delivery times are a local issue as ITS ALL DONE FROM
THE U.K!

If you live in Bristol that’s a lot closer than LA. It’s not that it’s slow in the US the issue is there a slower time from U.K. to USA

“ Looking at sources relating to air cargo it looks like air passenger numbers matter for air freight capacity as they ship within the bellies of these planes too.
So, I hadn't realised that as people start taking more flights, the air freight capacity will increase, and that should help the likes of BOO”

Honestly how thick is this guy. This must be a joke? Also completely missing the fact that it’s not just number of planes that need to go back up it’s also type and no one is clear yet if the number of the larger planes will ever go back up

Kallu this is waffle

Forex is always an issue and was an issue at Q3

This will fix as manufacturing is moved to India for that region

This was answered at Q3 update

Is up £430m

Last update cash available was quoted as £700m with £600m from facilities so THG’s cash was £100m

Now cash is £530m exclu the facility

So cash is up £430m!

@soleman last time it was so £700m less facilities (£600m) so was £100m cash

Now cash is £530m

So cash is up £430m!