Member Info for danl90

Sorry bablake I’m not biting

My thing is correcting the milkman (he know 0 about boohoo apart from what cameras they use)

Just thought above showed how clueless he is. Apparently the tail is wagging the dog?

In terms of the clothing offering there is wider appeal but how boo does what it does is the same. Each brand goes on the “test and repeat” journey. The product range goes up (KM went from 300 to thousands)

So boohoo isn’t soo different. They have a successful business model on a scalable platform and they buy brands and plug into that. And guess what it works

Remember all Rag said his business got a test and repeat for order for KM. he said this was “unsustainable” and wouldn’t work. Well shows how in touch he is with how the industry has chnaged and what boo does as KM has smashed it

Investor pres there a great bit where Carol chat through this brand journey (she covered it in Sep-20 too but rag opened his first investor presentation the other day. Just be get confused by the words and pics)

“BH group is sooooo different to BH/PLT of old, its gone from niche to mass appeal and thats just the clothing offer”

c.£1.6billion of revenue from old brands and £140m from new

Next year the chunk at £1.6billion will be 80% of the 25% growth and the other bit will be add on (roughly equal amount paid) and then be 20% of next year growth

Don’t know how you cut it but it’s hard to say it’s sooo different when you actually look at the business and medium term outlook

Do try and look at the business rag! Or maybe stick to stories about why cutting 250pcs is better or even better let’s all gather round for a Pennywise story

Shhh now all rag is going back down memory lane. He might throw in a homophobic slur if we are lucky

Because it used to be £4 so it will be £4 again

It's "potentially" that powerful when Asos is valued on 40x earnings. If you have inflation of 2% annually for the next 40 years the £1 you will receive in 40 years time on a discount basis would be worth pennies to you today. If inflation is flat it would be worth a £1

So yeah can be a big impact but Asos's huge P/e amplifies this effect - it means earning have to grow faster and faster so investors feel that will be the same bang for the buck in the future

But growing faster dials up the risk? And if inflation is up and interest rates follow why gamble with asos when the bank might pay you a decent retrun with 0 risk

Yeah but that's not what is happening here. those costs are being passed on and a large chunk of asos's cost base is fixed

It's the DCF element - that's how the funds with the billions see it. Us lot get out voted in terms of £ coins

It's not just what the fear of inflation will do to the bottom line. Likehood is is that most cost pressure will be passed on (the recent CPI data showed cost of clothes rising so this is happening)

It's as growth stocks are often valued on a DCF model. Inflation means the value of future cash is now worth less to you

well that's load of rubbish

"I still think that they could have operated everything centrally and their invoicing could merge the 2 brands" but the point is that you're hoping the customer goes "oh i'll buy a t shirt from topshop" and then goes "oh now to asos for trainers and make up"

You can't control that in that transition they didn't go to PLT instead. It all needs to be on one site to drive the x-sell

Also it would have to be a very smart system to realise "oh those two orders need to be together" and bundle them. How long would that window of "bundling" time have to be open for? Asos sends a parcel out in minutes. So in the example above the topshop dress could be picked and ready to go while you're still deciding what type of shoes you want. Next day delivery would be impossible as well as running a huge risk that the customer goes elsewhere mid-shop

The other issue is you're thinking the brand value is just a website. Topshop brand is older than the internet. Anyone who goes and googles topshop will only find asos and they will go "great same topshop but now next day". Why do you think asos have lost something?

Also as I said more clothes of topshop were sold on asos than the topshop website. So in reality what value is in that website? It wasn't popular before

Key here is driving x-sell and up-sell. You can't do that with two websites

It literally does this

I think you're just grabbing at thin air here

Go on asos click men or woman and you will see as a seperate heading "topman" or "topshop"

Also on the link above when you search topshop it answers what you noted below

I think this is a case of you not having a proper look at the asos website

Take it for a ride. Don't forget more topshop was sold via asos than the actual topshop websites before anyway

I'd also love to see if we can get a partnership sorted with Uber eats! Ceo did this at his last job

Balloons and "emergency" card range. Could even include a bit of personalisation

The revenue from this would likely be minimal but raises the profile and might result in the sale of dog houses falling significantly!

I scanned down the financials this morning and was a little shocked by these figures

Ivan (who owns 9% of Glencore - another of my shares I hold long term - invest in copper and you'll thank me next few years) but he waived his salary as he had enough skin in the game

He's worth billions. What salary can you pay him to make him want to do his job that a huge chunk of equity can't? For me MK should look to step in this direction. He has a fair few million in the share incentive package

On the Glen point I'm aware there are divis which makes a slight diff

"People who bought Topshop know Topshop not Asos"

Well that's just wrong and perhaps shows why you're misunderstanding this

Topshop is a strong UK and Europe brand. Asos certainly has better brand awareness in the target market. Asos is also better with Gen Z etc

The topshop brand when you google and click any links takes you to the topshop part of asos

What else are you looking for them to do? Asos is far better known and better rep for delivery etc

Well they just raised an insane amount of debt

$9bln on MGM so plenty left

This is the top page on google when you type “topshop”

https://www.asos.com/topshop/

Also the brand value is in the clothes and customer base who know the quality and sizing and designs not in a website. You don’t buy a Ferrari because they have a nice website the brand value is linked to a lot more

Topshop stores outsold its website by a huge amount

I think someone below nailed this (sorry can’t remember who) but it’s optics

We all know logically it represents a great step especially given how many coal plants there are and the huge plastic waste however in a dreamers world you’d say

- this still produces carbon (pre capture)
- does this prolong our use of plastic as we now know it isn’t a land fill issue

So in the dreamers world they would rather shoot for the impossible items to fix both

Any of these could be great suitors for this company. They all need to go green ASAP and diversify earnings

Their contact books and balance sheets would rocket this technology

Also for the coal conversion this is a headache for glen

But that's two lots of marketing and again there is no x-sell

What if someone bought from topshop, goes on to asos and buys a lipstick

Rather than 1 package there is 2

So double marketing costs, double seo burden, two operating systems and then no sales synergy. It would be madness

When you google topshop you find asos and asos have done plenty to make this known. And long term this bring huge benefits as the above

It's a lot better this way

Both stores in Manchester city center (they are 40 seconds walk from one another) were busy when I walked past 3pm today. Also saw someone with a huge bunch of balloons - always think it looks quite funny!

Clintons usually has no one in has two people in. I do wonder if the PE firm that owns clintons should buy card?

because asos has permission to sell make up and other add ons. Get the items and £ per order up as customers can add all items into one order

If a separate topshop website there is a possibility that there is two orders for the same items. Also you can't push the x-sell as well

Boohoo have this problem in that PLT is not linked to debenhams - no x-sell

Sorry this one is better

https://www.instagram.com/p/CO-DsRjrylG/

Pressure direct to Boris on the plastic problem

https://www.instagram.com/p/CO-imOZteUe/

Mentions burning as a problem but this is literally just burning and not burning for fuel and also Simec has carbon capture. Gets rid of the plastic problem and coverts coal