Member Info for danl90

Sorry rag not something I know a lot about. So what happens in terms of this additional cost the customer is paying from the view?

Also in terms of returns why is this an issue?

Does a EU hub fix this is for the return but do boo need to pay tax to move it to the EU? Or is the point you’re saying above that you (as supplier) will send straight to EU so no extra tax?

I guess that then does mean we are having to hold two lots of stock? Not an issue per se as if we can start next day delivery in EU that’s great in my view

A short term issue?

In relation to VAT im not so sure they mentioned extra cost to the customer

If we are paying any extra tax then that damages the margin so key to know the %

Also the point on returning to the U.K.?

Also the CFO said the warehouse was to help with VAT nothing was said about the end customer getting an extra bill at the door. So either
1) the eu warehouse becomes the importer and we pay the extra tax. But then we are paying tax that might not sell
2) the customers just get used to paying the tax but how much is it and how does it effect our proposition

With your research can you let me know

Yeah I get that but it doesn’t mean it’s not relevant as if we say send £1m worth of nipple tassels to the EU hub but actually the U.K. is crying out for them will it cost us just to move stock back?

This could mean a huge surge in working capital needs as we need to stock two factories which can easy complement each other

https://www.google.com/amp/s/www.bbc.co.uk/news/amp/business-55757931

Is it now basically impossible or crazy expensive?

CFO mentioned an EU hub so would that fix this?

So title of the tread is FT as in Financial Times

Try Googling that and the word boohoo?

Saying boo pulled out of the process

Sorry I meant warehouse not factory

Slip of the keyboard

Big block shape building I mean basically :)

Both online not in stores and these are in 1-2% I quoted

Happy with good online real estate but huge no to stores

@P circa 1-2% of revenue was via Amazon and asos. Prime internet real estate

The wholesale topshop do, while some is via asos, a fair chunk is via big America retailers (Nordstrom etc)

This is what we want to avoid as
1) we can’t drive it’s growth - we all know stores aren’t the place to be so why try and sell there?
2) we lose contact with the customer and the data - test and repeat, bundling products, increase shopping frequency etc etc
3) doesn’t fit with our quick and dynamic brand positioning - stuff bundled in America stores with SALE slapped all over is the way to kill brands now

We of course should sell on asos and Amazon as these fit the online story but avoid wholesale to stores completely

The multiple is high as we can drive growth
- new customers - easier to get them online as our brands are cool
- make them buy more often - apps and targeted adverts
- make them buy more - “you clicked on x why not buy it”

Whole sale dilutes our equity story

Google “topman signature”

If you can’t beat them join Em ;)

@dan I didn’t say they didn’t

But £400m in Oct take out £250m and they just said £90m for a new factory.

Asos has a higher working cap need than other businesses as it stock third party good (more lines more products). I was just saying it’s a big chunk of change

But I also said I think it’s a very smart move and one I would do if them

Maybe but asos know they have to grow own brand. They can’t keep having a two thirds of their business exposed and least of all to Amazon

They will know how well topshop sells online as they have sold it for years so will have a good understanding of the brand so it certainly makes sense

One day Amazon will sell clothes properly (it only does $30billion on sales atm) and given its size and cash flow it could undercut asos on every single product and you’ve seen how U.K. markets react if the margin looks like it will fall

Also why pay asos premium when you have prime for the rest of your life?

I think this is a smart move for asos so I wouldn’t rule it out. Investors might fund with a placing so they could have the cash in less than a few hours

I’ve a good feeling. Just don’t see the other bids being real

This does make sense for asos though as being a reseller has slowed their growth and more and more makes them at risk from Amazon (when the giant decides to go into clothes properly)

Given asos though has new factory to build, had to raise cash as it was originally net debt. This feels a big cheque to write?

But I guess pay £250m today to save the company long term

Boo is front runner

Nah

Boohoo all day

Why is £300m overpaying?

US/EU distribution is being looked at so why is £300m overpaying?

Boohoo have this!

They will nail execution and short term shares will fly

Come on boo!

middle of the beach...

@Har - thanks buddy