Member Info for danl90

Funny how I wrote all this (and some points that are missed here - this is a big high level) and I know nothing

Yet you read it all on an article and it’s amazing

Also rag said looking at financials is pointless and he has 30 years industry experience

At £300m EBITDA I don't think boohoo could afford it. I know "valuing" a company is just mumbo jumbo or maybe it's not?

For Very with an automated warehouse, well integrated platform and growing own brand offering they would be looking to get 12x possibly higher

If boohoo tried to buy it would be an RTO

But I like the idea of buying N Brown for Debenhams. I would never do credit on boohoo/ PLT as it just has a bad image and is painted as predatory as aimed at younger shoppers (not my view just how it is portrayed in the papers) But N Brown could x-sell finance to Debs where the shopper already has a history with store cards etc

I was meaning it in jest this “brand awareness” advertising. This is what asos were saying they have been poor at. Their advertising is focused on product and driven by data

This is where boohoo are better as they have a high brand presence

You have to do this sort of advertising and steadsted grabs the international shopper

Bit late to add to your holiday wardrobe when you’re boarding the plane!

But why buy shares then?

This is similar to rag. The stock reflects the business value. They aren’t appreciation tokens!

The “much of a difference” point is referring to demand. The point above is referring to profitability. Both statements can be true

I fully agree with you re the high street. And I agree with you this tax is not the way to do it

But just because boohoo has a higher EBIT margin doesn’t mean this doesn’t impact share price (if boohoo have to saddle any of this tax - and that’s IF). An investor will have a EBIT % in mind and a return period if 6% drops to 5% that’s a 16% drop in profit forecast. So a 16% drop in valuation

Stocks are valued on forecast earnings. If those earnings look to be lower then value drops

I’m just presenting a middle view. Clearly the design of this tax is to clip the wings of online. I’m just laying out some points

If VAT was scrapped and we held prices then profits would rise by more than 20% as the VAT is at sales level and profits are after costs.

Sorry the 4% EBIT figure is asos (it was just on my head) I think boohoo is 5-6% but still run the numbers

I’m not “deramping” here my point is be very angry about this. Somehow you all think “yeah no issue” well that attitude is going to make it happen

If any of this cost fall to boohoo then it’s a big dint to profit. Also what if it effects businesses of a certain size? The huge ground gained on bedroom brands reverses. Its too one dimensional to be relaxed about it

2pc tax at a sales level on businesses that are looking for a 4% EBIT margin

Go away work out the maths and let me know what that does

What you also aren’t factoring is is that competitors who are less U.K. focused are free to make 100p in the £1 so can grow stronger while we lose 2% of 50% of our revenue

If you understand this sector you’d know this was a big deal and hence why it’s stupid

Thinking “it’s only 2%” youve not much clue

“Capex coming down” apparently too!

Capex is going up not down

Gutted I sold my lower lot for 300p as this news will really kick it on

Luckily though it will help me get my losses back from the chunk at 435p!

If there’s a price below 290p I’d be happy to grab some but doubt there will be. Might have to sit on the side till results as I think no matter what they are the stock will come off that day as forecast expectations will be lowered

It’s a good point but this isn’t anything new. As boohoo and PLT have gone global and they start to use bigger influencers they ultimately leave a gap of the more local influencers which Isaw and others steps into

Ultimately boohoo have to decide do you carry on using an influencer with 100K followers but good interaction or do you go for Megan fox and try and get 2m more customers

Unfortunately it’s too expensive to play both strategies

It’s very true. Honestly on the boohoo board it’s hilarious

You update your view for new information and they act mental.

It’s called common sense

@kallu please tell me how someone searching solely on asos app isn’t to asos benefit?

Even if others could track it they would be getting data slower. Also you need the people to process it. Asos just about to add 100 more data scientists in Dublin

Which other fast fashion retailer boosts this?

Hut is down as there is a lack of confidence in management. They aren’t underperforming on any single financial metric

Agree. Don't get me wrong but I like this business and I have chunk prior to "the day" but I think this will stay volatile and maybe The Analyst that attitude to customers isn't great

Honestly MyProtein have been a nightmare

I bought some yesterday at 275p but sold this morning at 300p

Reason - Hut group have had an absolute disaster with Cult Beauty. They have made it so UK VAT isn't deducted from products and the site looks just like LookFantastic (you're a Cult shopper as you don't like the mass market feel of Look and Feel unique)

The founder of Cult did a post explaining this but it hasn't made the main page of Cult and people are fuming and in their droves finding SpaceNK!

While we in a debate about how good Ingenuity is! This is a joke. The CFO was even saying how they had integrated Cult "ahead of schedule"

This business makes such a dance about being ahead of schedule. How about be on track for once but do it 100% right. It strikes me like Microsoft. Get it out the door 80% done. The rest will sort itself

Also recently I've been trying to get an answer to a query from Myprotein. It's been useless. Twice I've been told a product I want is being discontinued and twice I've been told "wait two weeks" - it's been 4

No one knows or has a clue and worst of all no one is willing to go away and try and get the answer. Every response is like talking to a robot

I'm really not impressed so was happy to get a little money back this morning but until I see the VAT issue sorted at Cult I'm not coming back. £275m paid for that and we turn it into Lookfantastic. I get why (medium and longer term) but there is no comms with customers. You can't do that. This is beauty. The people who covert most what, how and who they buy from

The divi point is incorrect

Certain funds buy growth

Certain funds buy dividend stocks

There are very few that want both (as no one believes it possible and also the divi you pay out could fuel more growth so why pay a divi?)

This was the case with Prudential

Fast growing Asia which needed more and more capital to make sure it was market leaders in all the new markets it was entering

U.K. and mature markets with no growth but highly cash generative

Investors who wanted growth weren’t buying as the growth overall for the group was pulled down by a U.K. market growing 1% a year and dividend funds didn’t buy as the divi was less than competitors as so much cash was going to Asia

Split company in two (Pru and M&G) and stocks soared as funds could reallocate or enter a equity story which was more suited to their fund

If boohoo paid a divi now it would be like saying “it’s better with you than us”

Tbis was the point with the London office. £72m to buy a London office when there’s a world to conquer. Stupid!

Can anyone share?

Some at asos as well but means nothing in these markets

Just ignored

This is great news!

I’ll get you all some pics when it opens! Ha

But how do these numbers work if PLT “wanes” in 3 - 5 years as suggested by an industry champion?