Member Info for danl90

Sorry to rags list of errors I can also add

- general misunderstanding of marketplace (in relation to boohoo). (misunderstood twice) Once as he though the vendor would be getting the 15% commission so no one would ever do it (no they actually get the big slice) and also he thought marketplace was just a website with lots of stuff on (shared a zalando link which was incorrect - he'd picked the wrong one as misunderstood)

So I'm all for opinions but for someone who thinks it's all being done wrong or just doesn't understand business concepts at what point does his bullying opinion lose credibility?

If you think test and repeat at boohoo is the same as topshop in the 90's for me that shows a lot

Thanks P but again I'd disagree and think for some reason you see the world through rag tinted glasses. It's been 2 or 3 times now you've looked to back against me when 1) rag is the one who uses offensive belittling language 2) he tries to expose who I am and 3) I am the only one who backs up what I say with direct quotes or links (rag hasn't except a link to topshop "platform" from 1990) and 4) my career means I'm well placed to understand value (I actually know a few of the analysts who cover both boohoo and asos - but again rag here has said my opinion is useless as I haven't worked a day in fashion. Have you correct him for that? No you again come for me - why?)

John said platform a few times before Debs (the marketplace part doesn't need a platform). Two examples of JL talking platform
https://webcasting.buchanan.uk.com/broadcast/5f60844783507b593b4677e3/5fc65f2f0c7aa22257c26e51
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2021/301335866-20210114090355.mp3
Happy with that point?

I don't dismiss the camera. My point there was Rag tried to shut me up (when we were arguing if a platform was real or just a webiste - he continued this row for week despite quotes from JL, Next Ceo, Hut Ceo and Asos ceo - did you shoot him down despite me presenting plenty of evidence?). Rag said I had to shut up as I didn't know the type of camera Asos used. This again is a trait you're attacking me for but not him. My point was a £200k camera can be bought tomorrow. yes it had an impact but it is not a moat. It's not different to anything done before where as a platform integrated is. So not saying there isn't a point to a camera. The point was that rag said i had to shut up on a argument based on "is a platform real" (three industry ceo's and £billions in market value) rag said no. Lost the argument so said I had to shut up as I didn't know the camera - you think this is fair?

I agree opinions are all useful but when someone say
- mark down pricing is a mistake and will fail - boohoo do this
- platform is just a website - boohoo back the business on this and a £120m of annual capex
- test and repeat is the same as what topshop did - it really isn't
- GM% of wholesale is the same as own brand
- Test and repeat is a bad strategy - boohoo bet on this and employed successfully at KM and others
- Wrangler selling 200,000 units is amazing
- It would be better if boohoo had a "more normal p/e"
- Stores should be considered

These are quite big statements and fly in the face of what boohoo are doing. My point is why are you defending the opinion of someone who say everything management are doing is wrong?

I'd accept your point but I back up everything I say. My points are never "do you even know what pennywise is? no, well your opinion doesn't count"

Again I think you read this wrong. I present facts and substance. It is rag who shuts down tangible opinion based on points of detail. But you

This really is in a bad way atm

The company is solid though

Asos own brands/ exclusives are now a material part of revenue
Growth will have slowed a bit as people went to high street but this will normalise and continue move to online
Further M&A can happen (new look)
Nordstrom partnership will help fix the slower than liked US growth
Asos has a market leading next day delivery offer in many key markets in a normal world this is key
App is no 5 on U.K. Apple store. Chinese Shein (hit with gen z) has fallen to 8th
Freight costs are a hit but partly hedged. In longer term will normalise (or Asos can buy a plane or two!)
Sustainability update coming. A long term success factor
CME update will present size of the prize for next 10 years

This isn’t enjoyable though

and just to clarify the marketplace model is very different to the test and repeat model

Happy to go into but I'm assuming that bit was a typo

When you say the board haven't told us how the platform will work? The "platform" has been a core of the business since an early day

https://www.boohooplc.com/group/our-vision-and-strategy - it's the first item

But to clarify the platform as referred to by boohoo and other fast fashion/ e-commerce is the end-to-end integrated capability from sourcing through to consumer

Does this use 3rd party parts? Yes. But the key key key element is that boohoo/ asos own all the data, ai, customer engagement and they also own all the integrating tech and data (really good chat on this from asos ceo and the next ceo - i can share links)

So not to "i am" (i'm really not trying to give that tone so sorry if so) but the plan for platform has been known for a while and boo spend £100m or so a year adding to it

But as you say they could start renting it out. I'm not sure they will though given that they are trying to build capacity for future growth. Seems odd then to shoot yourself short and give away some future growth space?

Better going marketplace route as then you don't have to get the warehouse involved at all but you still get a nice commission and all that lovely data! Also a clothing warehouse doesn't easily pass a lamp through it

I don't see that I did reply with the big "I am" I just pointed out again absolute nonsense from Rag. There are now numerous case examples of what boo does to relaunch old brands (KM, Coast, Oasis etc). The formula from the mouth of JL and Carol has been the same (bolt into platform (come onto later), update website, introduce test and repeat model and then expand ranges). This is seen in the set of investor presentations and from the lips of JL/ Carol. Rag has stated a number of times that this is wrong and will fail so 1) why does he hold the shares and 2) why do boo keep this strategy so successfully?

I think there was plenty on debs and it's exactly what they said it would be (https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2021/investor-presentation-jan-2021.pdf - slide 7). Debenhams is a stable for own labels, marketplace model for third party fashion and then wholesale arrangement for beauty. Further to that Neil at the last investor update said "pencil in lower growth and revenues in line with historics for the in-house brands" (i'm paraphrasing ofc) and they also answered to an analyst that they won't get their own websites

Ultimately you don't want these to be big as they will have slower growth. Better for value if these do as they did for Debs just fill the space and add a nice bit. Main focus as I said is get debs being a marketplace as working cap can go to the faster growing parts (a marketplace model means debs holds no stock). Your point re consignment is interesting and would be how Next's version of the world is working. Boo could do this and I wouldn't disagree with it being a good idea. Asos in their CME - supply chain update also saw this as a big win in future. But in here this point you hit the nail that rag misses. It's exactly these capability at huge scale that makes these businesses so valuable. It's not the camera or a small point of detail it is the "platform" as you point out. Boohoo could rent out it's platform like Amazon or indeed as ingenuity is for Hut (softbank invested in solely this part)

It is the platform that is a value here. Rag say's that it does not even exist!

Re the plan JL did say this it's in the pres above and he says it during the call but again I don't disagree this can't be extended but atm that's you inferring. My point is in black and white on a boohoo doc

Wholesale - yeah sell some of these brands wholesale. Growth is slower profile so it's no issue. Also small beer

My point with rag is that he gaslights over and over yet in every point we have disagreed time has shown me to be correct. Has he owned up to any? No. He just continues with name calling and trying to call out who he thinks I am

My point is his insight isn't useful. in the point below his answer is wrong. KM shows this. Rag said KM was tops 500 pieces a season (as it was) boohoo now do 150 a week! His insight is based on the old world. T&R won't work

The part to focus on is what boohoo have done for the likes of KM.

They haven't focused on the micro thinks. They have done the opposite they have fundamentally changed each brand at the macro level (https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2020/finance-doc-sept-2020-lr.pdf - pg 39)

They then put the same boohoo strategy in place ie test and repeat and the other things I said (page 40 and listen to it direct from Carol who's the one presenting the slide)

Note that rag say's in his reply this isn't the thing to do - why does he think management are wrong? And if management are wrong why are they having so much success?

Also again Debs brands are red herrings. Don't get too concerned on these. Low growth brands. They are shelf fillers only

Ha rag has blocked me again. Is that after he got exposed for the 200,000 wrangler units?

Bless him. He’s still thinking this is the 90s and a platform is just a website

Poor poor fella

Also to help you a bit further I’m not the one saying management are doing it wrong.

I’m saying they are doing the right things

It’s rag saying what they are doing isn’t right.

You seem to be a confused and angry person. Have a walk or something

I’m just communicating the strategy from the board. It’s dead easy

Understand the strategy to see how that will deliver value

Then have a view on how successful that will be vs the value of the shares

I don’t think I’m better. I only put down rag who tries to put me down as I didn’t know who pennywise were

Why are you upset?

Can you explain working capital?

You need to look at Karen Millen for the answer here

https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2020/finance-doc-sept-2020-lr.pdf

Ignore Rag he think 200,000 units is insane!

Boohoo success to date re older brands have been 1) reposition 2) improve website and customer experience 3) improve delivery capability and 4) extend ranges ie curve/ plus or loungewear 5) most important employ the PLATFORM and the advantages this gives such as test and repeat etc

If you listen to the live presentation Carol says the KM used to stock 500 products a season. This now 150 per week!

Rag saying below this doesn't work but there's a later update where JL says KM turnover pushed north of £100m. Just so we are clear both JL and Carol say the success is from test and repeat (the boohoo way and not how topshop used to do it 30 years ago)

KM lead time was 6 - 8 months under boohoo it's 6 - 8 weeks

But in all honesty the new brands are a little bit of red herring. They are stocking fillers for Debenhams. Fluff for the shelf. The value driver for Debenhams will be creating a successful marketplace solution as 1) insanely valuable and 2) working capital can stay in the growth brands (why put £xm into Mantary to grow at 2% when more cash can go to PLT and grow at 40% - you have to keep the growth to keep the P/e so these fluff brands staying small is less of a headache)

The other part to consider as to why these old debs brands will be small is that they aren't get their own websites. Just shelf filler for Debenhams

But any Rag will say this is all wrong - not that JL and Carol say it (gaslight name dropping for you there)

Don't listen to rag he's had his day when Pennywise was the BSD

The CME event in 10 days is on sustainability so won’t give an insight into trading

Really worth watching the retail and supply chain ones though as these tell you a lot of great insight, where things are heading and what’s possible in the future

Probably worth understanding why Asos and Boohoo have gone different routes re their deals

Topshop is a 20 somethings brands and Asos cater and target exclusively for 20 somethings so they can take out staff and function from Topshop as they have this skill in-house (only from an online perspective which was x10 bigger than Topshop was). So in reality little to gain or keep. It's keep the brand and leverage from what you have

Boohoo and PLT are 20 something brands where Debenhams brands are old lady or men so you can't just transition these roles from the core Boohoo business as it's not the same

Fashion is very much a spectrum. All different taste and niches

30 years of experience and that wasn't obvious

https://www.sharecast.com/news/broker-recommendations/jpmorgan-lowers-target-price-on-asos--8079670.html

This is the reason for today. Nerves over FY22 outlook but as they say all know issues and some of them addressed by Asos (ie freight is locked in on long term contracts etc)

Good to see JPM picking up on the rise in own brand - collusion and AsYou are strong performers and launched organically. Also exclusive to asos so drive traffic

I really would recommend watching the two capital markets day presentations

They really give a great view on what is on offer here and where Asos can and will win. The normalising of the world means speed and cost to consumer will be key

Asos have industry leading warehouses (except Atlanta - still manual) and are adding more

Consumers want value, speed and convenience (in delivery and returns) - smaller brands can't offer this and other historic players can't do this outside of a local area

The issue for asos is if they lose to a local competitor in every local region but given the shift to online and the own brand offering this becomes less and less likely. What would be great is a bit more M&A

I think there are deals out there so Asos should be stricking or even doing an "academy" where young brands sell a stake to Asos and we have a call option for the rest in the future

Directors need to be buying at this price but so close to results it unlikely they will be allowed

I think this is the City thinking people have gone “back” to stores. But what stores are on the high street?

Zara - that’s been online the whole time
Topshop - now Asos
Rest of Arcadia - gone
Holister - was popular when I was in 6th form
FCUK - popular when I was 7/8
Jack Wills - used to be popular in the South

There isn’t a shop where people are going to. JD would be competition for branded stuff but their range is much less

They should get Molly Mae there!

They wouldn't be looking to buy a new warehouse if the opportunity wasn't presenting itself

Asos's offer if faster and more efficient

https://www.asosplc.com/~/media/Files/A/Asos-V2/Supply%20Chain%20Capital%20Markets%20Event.pdf

pg 11 - shows how far ahead of the field Asos is. Next day across so many markets. Now the world is open this is what is needed and a USP

I really wouldn't sell here. Look at the progress that has been made

Topshop acquisition
Growing active customers (along with premier growth above this)
Investment in the infrastructure and platform (automation & US and EU)
Cash rich and ready for M&A

All on a trailing x25 EV/PBT

Asos will buy New Look when that goes under

HSBC were looking to offload their debt a few weeks back

New Look is similar to Topshop for Asos ie a core brand on it's website

I think this would be a great acquisition and Asos could launch it international (a return)

"Opening a big warehouse distribution centre in mainland Europe "would make a lot of economic sense," he said. He estimated such a facility would employ about 1,000 people.

While JD Sports' existing warehouse in Rochdale would not close, "it would mean the transfer of a number of jobs into Europe," Mr Cowgill said."

I think the above is key. It wasn't clear but I hope when boohoo looks to add those new warehouses some are in US and some in EU.

Asos said in their results update that moving items to EU used to take 4 days and now takes 20 days!