Member Info for danl90

Q1 FY22 for Boo means any date from Mar to May-21

That's just how things are written in the finance world this isn't boo thing. Proactive investor also got this wrong and said we won't get the website until 2022! which is wrong

It says £190m "toward tech, beauty and infrastructure" so no it's not a lot of money. Of Asos's £200m most of this is a new warehouse

Boo are building a third warehouse but the honest answer is is that we have tonnes of room through our current capacity so atm we can just leverage what we have

Point is from the debenhams acquisition we can learn so much more about the customer than just clothes

"presents a fantastic opportunity to grow the Group's target addressable market and increase the share of wallet" - we can now capture more of what a customer spends and learn their habits - this is a key KPI

"this marketplace model" means we can scale out new markets and products without risk ie want to find out if nipple tassles sell well in finland? Ok marketplace can open a webpage in finland and partner with a supplier we have all the sales data. If it works we can go source ourself

Its not tech like a micro chip its data and what we can learn

No we are now more like Hut group which with similar rev and EBITDA as both is worth £7-8billion

all in all given the market is blood bath today that doesn't feel too bad!

sorry 60% of the traffic i meant

But if you consider that PLT is worth £1.5 billion (that's a number i'm pulling out given how much of the group rev and market cap) and that gets 10.7m views

Topshop looks like really good value as 60% extra traffic for 1/5 of the price

I'd bag topshop too

or debbie.com?

The point is right though splice as it's a marketplace model it can be anywhere instantly. If we set up deb.com in brazil it could in theory trade tomorrow as you'd get loads of brazilian companies to put their stock on there and then they take care of shipping to the customer. Boo would just get a commission

Asos would have to build a warehouse, ship product to the warehouse and then sell. or they ship from UK (as currently do) but with a 3 weeks delivery time

This is great for boo as we can open and test markets instantly with very little capex cost. also say if brazil have a market leading brand for nipple tassels that everyone loves. You can "partner" with that brand to get you instant traffic

This is why i've been constantly saying to be like HUT

Like it and agree!

The yanks might find "our debs" sexy!

We are only keeping £280m of the £400m

yeah the wholesale inventory bit is debenhams doing what asos does for clothes and homeware and buying it and then selling it and doing the distribution. Boo are saying they won't continue that going forward

So saying they won't go down the asos route

Will be like this for beauty though but that's because it's a different beast to clothes and we don't current have a beauty offering (well decent one)

Beauty: Approximately 20% of the online revenue via a traditional wholesale model

But it's exciting. I've been saying we need to look to Hut and here we go! Come on £7-8 billion valuation (still seems a way off! ha)

Just to add - from the RNS

? Wholesale inventory: Approximately 30% of the online revenue (bought from third-party brands, including fashion, sport
and homeware), which will not continue to operate under the Group's ownership

This is the Asos bit. So just clarifying that we won't be being an asos but rather a hut - £7-8 billion valuation sound alright to me! ha

Hut group is this model. makes the same revenue and profit and is worth £7-8billion

"So, all in all, it looks like they're trying to make that shift from "online fashion retailer" to "tech company that sells fashion".

I wonder who was "banging on" about this?

yeah i know asos have a market place but it's mom and pop shops and "edgy" boutiques and it terms of the total business it's a tiny part so not quite like what us and hut are doing with proper brands. All businesses have "side" activities like boo had 1-2% in wholesale. So asos isn't the marketplace model as 99% of rev comes from it doing the distribution model etc it's more a nice PR piece than representative of the business model and i guess it's a nice way for them to sniff up and coming designers but not much more. They don't disclose figures on it so it must be tiny

But look I like this idea 1.4 million beauty loyal customers you can easy see this being 3 - 5 million if PLT and Boo say "oh btw included in your next day delivery package is 100 free debs beauty points so get on there for make up and FYI it will also come next day - also get your old man a mantaray sweater"

But yeah i wouldn't like the idea of holding tonnes of third party stock like asos. this is why they were really keen to keep saying "capital light" as we'd need a few more warehouses if we were pushing sofas through! ha also a lot of cash would get sucked up into working capital which would slow any further M&A

i do still really want topshop/ topman i don't care if it's £300m I think it fits and we can grow it

Why don't we just merge with hut, go on the nasdaq and we can all retire! ha

And sorry to add that's why on the call there was so much chat about how the margin will impact as the debs marketplace will generate "commission" so in effect if we elect a revenue policy where we only include what is in effect our sale ie just the commission then our EBITDA should fly through the roof (im not too quizzed on accounting standards tbh and what tehy are now)

But asos buys a top for £50 and sells for £60 it will show a GM% of 20%. The market place in theory could just show 100% but as I say i don't know the rules on accounting standards and commissions.

the market place is more a commission generators where third party brands are involved not a cost of goods sold generator

Is that clear it's a little murky so hope i'm not confusing but yeah it's not like asos it's like hut group

I don't think this is quite like Asos as Asos actually only has one core of own brands. This is actually more like Hut group which I have said for a while is where we need to be looking to (Hut is same revenue and EBITDA as boo and Asos but is worth £7-8billion)

So in part it's a different model to asos as we are also not doing distribution for the third party brands where Asos do - again similar to hut

So yeah I am happy with the marketplace idea as long as PLT and Boo aren't on there directly. i think PLT and boo customers should be incentivised to buy the beauty loyalty scheme

but to say this is noted in the RNS as a new direction and amendment to the business model (again Rag they all talk about model and platforms on the call this morning - JL again said those two words about 100 times so maybe they are real considerations?)

Boo (or "our debs" rather) will look more like https://www.thehut.com/ than asos. For example you see Swoon selling through as a marketplace nbut hut will not have sofas next to the protein shakes in the warehouse - diff to asos

If the market place is the shop window and Boo is just a brand will we one day own shares in Debenhams PLC!

Bet none of us would have thought that a few days ago

"we are on our job" or something even more polished?

and i think the point here is that the brand will get a renewed lease of life

rather than the poor debenhams brands you will have coast, warehouse and oasis joining

So basically the customer think they are shopping about but basically still buying from boo

We then have a credible beauty business which we can grow. great here would be if we acquire some beauty brands and slot these in

This now looks like HUT group