Member Info for danl90

Q1 FY22 is next quarter we are in FY21 for boo as this year end is Feb-21. So mar 21 is Q1 FY22

I love financial journalists. You can tell they didn’t really ever want to do it

This guy has quoted that we won’t launch until 2022 as the RNS says Q1 F22 which is next three months

https://www.thehut.com/

Anyone know how much this is worth to hut group

Looks like this is the model here

I should add if this doesn’t feel like the Hut group to investors this will tank as it won’t sustain our high p/e

It not just about adding profit!!!!!!!

C.£300m of online revenue with £80m -£100m being beauty

I like the idea of the market place I think that’s a great place to put oasis, warehouse, coast etc along with any good debs brands. In essence this is exactly what Mike Ashley wanted to do by putting debs inside Fraser’s

I PRAY they do not put boo or PLT on there though!

Overtime I’d like to see the debs brands wound down and refined and hopefully we add additional brands that can go here

Good to see the whole thing will run on the boo platform!

This starts to look a lot more like Hut group which is worth £7billion (on similar profit?)

I’ll stay today as this is worth it just for beauty

I don’t think the clothing brands can grow 25% year on year. Also the web traffic is amazing but what if a lot of that was for third party clothing brands? We don’t know if that is staying yet or we will only be selling the own debs brands

You keep quoting £3billion Rev but it’s not that figure at all

We need to calm down and wait to see what’s in the RNS

Also credit card business! God I hope we stay away from that. All the bad press coming about Klarna I hope we can keep away. I want to be paid in full not maybe in 6 months. Profitable but too risky for me

@splice ok so you in organic growth 1 year and the year after...? The growth forecast is 25% year on year not one off

I’m not saying this is a bad deal but will the growth rate need to be tweaked? If so that Might put growth investors off

Maybe Debenhams brands go in the bin and it’s pure beauty? I don’t like those Debenhams clothing brands at all. Rag is right they are dog

Beauty is great!

@merv I’m not saying you’re wrong I’m saying that is where I’ll be focused on the RNS

If we tweak the mid term growth rate it will unnerve some investors who want growth

Tbh this is worth it for beauty alone and I think we can grow beauty

@mervv and you think that will still grow at 25%?

If I have £1 and get £2 that’s 100% growth

When it’s £100 billion and you get to £20billion that’s 100% growth but I’ve a feeling it’s a touch harder.

This is a bigger beast so my question is will we need to tweak the 25% growth rate

@mervv but it what the WHOLE business means to investors. Like it or not the the investors are buying the whole boohoo group. Some investors are invested here for the very high growth. If the over all group growth now is less (say 10% not 25%) they might sell boo as we don’t fit their fund view

At 10% growth our multiple might still be too high for value investors so they don’t buy

My point is looking at the group as a whole is the business split between one bit that grows really fast and one bit That is sort of steady

Prudential split itself in half for entirely this reason. It was massively undervalued as yield investors wanted to invest in the U.K. business but didn’t like the value of the high growth Asia bit. Growth investors wanted the Asia part but through the overall growth due to the U.K. part was too low

They split it in two and over night it was worth a tonne more as the investors who had sat on the sideline now bought in that part they liked

So I’m saying does having a bit that might not grow out off the likes of Morgan Stanley who (like all American funds) want to be all about growth

@mervv so you’ve missed all that I’ve written

This stock is about growth - we have to deliver 25% yoy as that’s what our expectations to investors are

Yes this adds lots of profit in 1 year but if that doesn’t grow is the overall group growth 10-15%? That might put some investors off as they invested here for high growth. We also trade on x40 for that high growth so we might gain some profit but lose multiple

I’ll admit that web traffic is mindblowing! Worth £50m alone

I agree with splice maybe they will strip this right back and keep the gold and beauty

@splice. I’ll be reading the RNS carefully. My focus is all on what this means for the growth rate and what our investors want to see

Yeah it adds a lot of revenue and profit but if our investors want growth. How will they react if we say these clothing brands won’t grow?

Beauty will be great but I’ve always wanted to own brands not just retail them

If our growth is only 10% as a group moving on afterward is that worth the multiple or do we start to settle? I’m saying I don’t know but it’s a different proposition now

Great to get some M&A done.

If this cost £50m I’d still like topshop! Ha

@marth yeah beauty but all these clothes brands are a bit crap? I don’t know but we haven’t just bought beauty here

My nervousness is that investors are expecting 25% growth yoy and if these clothes brands are crappy and don’t grow or go backward what does that mean for the p/e multiple?

Maybe they just keep a few and beauty. I’m just saying this needs to be looked at in the big picture

I’d have liked to have owned a beauty brand as well. I don’t like third party selling as one day Amazon will eat all

Well if you read my last post it says there is quite a bit of revenue from the Debenhams own brands which is what we have bought. My concern is around the growth

https://ir.debenhams.com/about-debenhams-0

200million visits a year to the website though for beauty alone! Tbh that’s worth £50m on it’s own

Need to see if the growth is tweaked

Debenhams has been investing in British design for 20 years through its exclusive Designers at Debenhams portfolio of brands. Current designers include Jasper Conran, Patrick Grant, Hannah Gibbins, Julien Macdonald, Savannah Miller, Jenny Packham, Preen and Matthew Williamson. A number of brands exclusive to Debenhams generate turnover of £50-100m each, such as Mantaray, J for Jasper, Maine New England and Principles.

Be interesting to see the RNS as how much of this was online

Agree it’s a good area to focus on as less competitive than the bottom end but I can’t see the growth rate being hit

Are we going to say to investors the growth rate falls from 25%? How do we sustain the multiple

I’m not sure on this. Beauty I like I should add but there are no brands here it’s all just “I go to Debenhams to buy beauty products”

For me this is huge no. I’ll be out tomorrow I think

I’m still keen on boo if not some big M&A needs to happen

Yeah makes sense and I’m all for boo having more distribution as I think next day delivery when we go back to the “real” world will be vital. Yeah Shein will be cheaper but if you need the nipple tassels NOW you can’t wait two weeks so you’d pay the small difference and get from PLT next day

I was just more nervous boo were going to see their products shoot up 15% or whatever purely due to tax but it seems that we can almost run EU and EU factory as a separate operation? And then just repatriation of cash back to U.K.

This actually might be a good thing as it’s the way I’d want the business to go. Boo building “another” UK warehouse is good as it’s for the other brands but getting boo and PLT out to the international markets is where the big value will be created

All seems fair enough. Obviously until this EU hub is set up it’s likely we have either a tonne of stock sat in France or we are eating a bit of cost but hopefully that’s all baked into the £3m the CFO flagged