Member Info for danl90

Bought some more today

- China will need to have these "strategic" reserves so will have to buy them back at some point
- Green revolution is still happening (I've an electric car being built as we speak!)
- Inflation is an issue but big infrastructure still required and investors need to deploy the capital
- Trading in oil looks like it will be a very big boom in the next 2/ 3 years are the supply & demand set is all wrong (Trafigura results were a blow out)

All looks decent for Glen here and China

I agree and I am always amazed as you say as to how busy the stores are

I would like to see some improvements though

- content of the cards (moonpig is funnier and more relevant) but this is an easy win we can hire designers
- online party/ balloon offering there are a few specialists set up during lockdown which are selling loads of party and balloon gear. Their ranges are far bigger. We should be blowing these guys out of the water. Also i think balloons is a great way to win back market share with younger customers. Again an easy win

I also think with rent reductions and price increases the EBITDA will be strong

@appollo the director sell was a single transaction on 14th so what you think you saw earlier in June wasn't the case

Sorry

I think this is really positive

FX will come back (not soon but it will)

Pawn/ loans have reduced as furlough has supported households. Furlough is ending and this will mean people have to return to the pawn shop. The same here for precious metal sales. Also gold price is rising so the increasing price will drive sellers

£15m of cash! Wow

I can’t find this article. Can you post a link?

So you’re reading this without the context of the previous RNS

At the last update we were told net debt as at May-21 is £110m (so you’re assumption is off) plus £40m of deferrals being the Vat and property costs

So this was poor wording in today’s RNS but nothing new

In the last RNS we were told they will use best efforts to raise £70m so net debt will fall to a very manageable £80m

Agree re the app. Everyone I speak to say "oh they have an app"

No one knows! Why is it not said to people when they are in stores?

The underlying EBITDA number is impressive and shows the cash generation of this business. A side from that the rest of it is all as we knew ie opening up and getting on with things. Also the net debt reduction is actually deferred vat and property costs (the £40m stated in the last RNS) so there isn’t a net debt reduction really.

Would have liked some news of new partnerships

All early days but shows the business is intact. Re sales I think awful May weather was why they calmed. Let’s not forget how awful that month was.

The marketplace will be "ready to go" they have had to set the infrastructure for this but the point is when it is (don't forget they have only owned the site a few months) they brands can pop on instantly. The likelihood is that you've legal agreements and commercial decisions such as the rate of commission and share of certain costs to agree before you can add someone. Yumi haven't just gone on there as they decided this morning there will have been a fair few weeks of getting the commercials right. Now that's done the whole yumi range is there instantly. yumi decide to sell 3 seater sofas tomorrow? It will go on instantly. The part slowing down the marketplace is the commercials and getting the right balance. But adding scale of any brand is instant. New comms sorted with another brand then boom all products on. No lead time of having to wait for the whole range of stock to land in a boohoo warehouse. And no write down risk if it doesn't sell

The part i'm correcting you on is your "and not on marketplace" as it's clear you thought (similar to platform) that marketplace means website and you were expecting like asos a separate website. Its a marketplace but that is a type of operating model. It means no stock.

Also on Zalando - you demonstrated again why you don't understand as you sent the link to their wholesale bit (ie buying Adidas etc). https://corporate.zalando.com/en/brand-hub/partnership-models - middle box fella you'll see the "marketplace model" and you'll see that the supplier/ brand does all the shipping and inventory risk. You can't even get your own points right

Yeah there are a few wholesale brands in but these will be to give the menswear range some credibility. There is only really Burtons atm. But you'll see marketplace be the bulk of this moving forwards

You should be happy rag - sucessfull marketplaces have HUGE multiples and you know what they are now! Well sort of

@rag the “marketplace” isn’t like asos marketplace on a seperate website.

It’s a way of operating additional revenue streams through a new business model. Part of the art of what boohoo is doing to making it so the customer doesn’t know one or the other. Previously 25% of Debs online was a marketplace and no one had a clue

I know you think this is “just words” but the whole point is that that Yumi dress goes direct to the customer from Yumi. Boohoo did nothing but get to collect their 15%

There won’t be a big fanfare and a seperate “marketplace” the “marketplace” is an operating concept where brands go direct via your website. It means boohoo don’t have to write a cheque for £150m buying a tonne of stock

It’s like Amazon/ zalando and not on the high street. They don’t own or touch the item but get commission. On zalando I don’t know if I’m getting a marketplace good or a wholesale good it’s seem less

Hope this helps

@slipperz. It’s not cool that you are so accustom to fleas in clothes. I bet your house is lovely

Also I ran and picked up a fair few free shares so what’s your point exactly?

Oh wait you don’t really have one. Just a house full of fleas

@Arox you're right the brand takes care of delivery as it IS A MARKETPLACE! Rag lives in the 1980's (do you even know pennywise)

The good balance here is that the marketplace brands are plugging the "gaps" in the own brands so there will be little cannibalising

" and not on Marketplace"

Oh no the milkman is wrong again

Sell the shares you don't get this business fella

This is the dumbest thread so far! Well done

While we all get excited about copper (and rightly so). Worth just adding the oil and food prices are flying atm

This will be causing a BOOM in the trading division. We were told at the production update earning will be in upper half of expectations but things have since got better so maybe another blow out year

The cash generation of this business must be insane! The net debt will be hammered if we don't decide on another insane buyback programme

Let's hammer the debt for one year and then start to enjoy the fruits

Yeah I agree I think Rhishi will back down and all be well I just think it’s very bold from Biden following huge criticism of Trump for a trade war with China (this could step one of an EU trade war) and also its very protectionist. Again after Trump was “******” for saying “America first”

But if it looks serious it’s a huge impact

https://www.reuters.com/technology/us-sets-suspends-tariffs-six-countries-over-digital-taxes-2021-06-02/

Now this is something to worry about

Oh but you’re not allowed to adjust your view on an investment…ever!

Might also explain the sell off as people knew this was on the way?

I think the most obvious reason for the share price underperforming is that we are near results. Q1 last year was a blowout quarter as everything shut and everyone ordered clothes to stay at home

The market (in my view) is pricing softer growth vs these very strong comparables and therefore a potential miss vs the 25% medium term target (for the year but this will trend over the year)

The CFO was quite keen on this saying it would be a tough Q1 but at the update they hadn’t lagged behind (positive). I think the sell off is as funds think as things have reopened people are back shopping on the high street. This is wrong. There is nowhere to shop. Manchester every day is packed but what shopping bags do you see? Primark or zara. That’s it

Zara was online the whole time last year and Primark “bits and bobs” isn’t what boohoo sells

I think this is market pricing in the slight miss on expectations which is amplified by the “re-opening” trade

wow boo is undervalued!

https://wmleader.com/general-other/55728/retailers-turn-to-online-marketplaces-in-scramble-for-sales/

Decent little cover of platforms today in the FT (covered here on a diff website but you should be able to access)

Explaining the benefits of "marketplace" but also how each of the platform businesses is going about it and what that means (it's not "just words").

It makes a huge difference in how many products you can offer - B&Q saying how they can offer "millions" of products instead of current 20,000 - 30,000 in a warehouse

Margin impact

Ability to bring in new customers not hit by current offering - boohoo will be hitting this with home and sport

and Zalando even covers rags favorite topic of taking the pictures (the big downfall point for boo's route). Zalando admitting same as next that they don't do the piccy's but the upside is the huge offering

Being a platform...it's not just words. This article is part of series called "future of retail" perhaps why Pennywise isn't mentioned?