Member Info for FED1

I actually think Boohoo is in a better position than Asos, and has more levers to pull (although struggling to pull them).

It's just the way that it is run like a private company and minority shareholders (plus Frasers) are treated with contempt. Similarly, I suspect sell side have also given up for poor disclosure.

I think it is time for Dan and CFO to have a conventional earnings call. I also think it is time for independent NEDs to fulfil their fiduciary obligations to shareholders and give the mgmt team a kick up the ......

If this company is going to be re-rated by way of removing the corporate governance discount, then it shoild follow market norms in terms of disclosures and timeframes. Furthermore, CEO and CFO should provide at least biannually a proper earnings call with Q&A so sell side and investors can get clarity on the running of a publically listed company.

The read across from Asos tells us that 2H was not great as well as the glaring omissions from the trading update. However, as a shareholder I still want transparency.

I feel this is a failure of the independent NEDs. Tgey should be pressuring executives to publish results, no matter jow bad they are.

I imagine so. Burnley should have a much larger impact on balance sheet than ASOS. It is encouraging that ASOS achieved a good sales figure.

I hope we are not having a repeat on last years debacle on the release of the annual results (ie, last day possible in August).

This did not reflect well on mgmt and caused the share price to fall to nearly single digits. Still have not regained confidence in CFO.

I’m hoping tomorrow’s earnings announcement marks the start of a visible turnaround. One of my worst ever investments.

They need to sell something. Fed up of share issuances. Admittedly insiders (or big investors) are funding the equity raises. Seems FY26 is a bad bath. Want some solid guidance for FY27 and a return to normalised reporting.

My 2 cents:

Pros:

1) they have shown capital discipline in last few years. Dan is a recovery stock CEO.

2) equity share issuances were right choice to address balance sheet issues by prior management (Kamani, Little).

3) £30-40m is realistic for Burnley (logistics not paddle board)

4) they have right sized business. Adjusted EBITDA is a precursor to cash flow. One offs will roll off.

Cons:

1) fy26 results are obviously terrible given the trading update. There was double digit revenue decline and negative FCF.

2) still needs to sort out balance sheet. £21m in interest. I suspect only half of last equity raise will go to debt capital repayment.

I think a chief product officer is actually a relevant role for a fast fashion business. Let’s hope they can re-engage 20-somethings.

Maybe next role to be announced is CRO. Chief Refund Officer.

That’s the first time in his tenure that I’ve heard Dan talk about revitalising Youth Brands.

I said it before, not sure Dan is right CEO for Youth Brands.

The trading update on 30 March actually gave a lot of granularity on FY27 cash flow. Admittedly, it was a bit light on FY26 overall cash flow but we could probably work this out:

Start Net Debt 1H FY26: -£111m

Debs Fund Raise: +£40m (Feb 26) (cash inflow - non operational)

Revolution Beauty Fund Raise: -£4.5m (Sep 25) ( cash outflow - non operational)

Interest Costs in 2H FY26: -£10.5m (I consider these a balance sheet issue and not an operational issue)

Net Debt 2H FY26: -£90m

Implied Operational Change in Cash 2H FY26: - £4.5m

Judging by the trading update, they are going to come out blazing that FY27 will focus on FCF.

Many of us on this board has lost money in this investment. We just want out at a reasonable price. We listened to John Little’s story. We are angry. We listened to Kamani family. We are angry. We are still listening to Dan Finlay.

Liberum, the corporate broker, valued Burnley at £30-40m if disposed. A quick win for the net debt/ EBITDA guidance.

https://www.proactiveinvestors.co.uk/companies/news/1083494/boohoo-s-debenhams-revival-comes-with-a-billion-pound-pitch-1083494.html

I think the guidance for net debt to EBITDA (adjusted?) to go to less than 1x by Feb 2027 seems like an easy beat. Net debt in FY26 was £90m and adjusted EBITDa was £53m. Ok it did raise £40m equity. It probably needs another £30m cash inflow from a disposal to meet guidance. A licensing deal for KM and Burnley disposal? Not sure we get to net cash now by FY27 but £50-60m in net debt and FCF neutral/positive would be acceptable.

I was hoping we would get an update about a potential disposal for Burnley although I suppose it has only been vacant c.3mths.

Apparently demand for UK logistics sites remain relatively resilient so hopefully this will find resolution in next 3-6mths.

https://www.cbre.co.uk/insights/books/uk-real-estate-market-outlook-2026/logistics

I think we can all say that we are cautious of management's upbeat tone.

The statement made in January's Trading Update regarding trading conditions over prior 6 months suggests we can expect some improvement in the numbers for H2 vs H1. The first half of the year was shocking in terms of revenue growth for Youth Brands.

I do think there are signs of stabilisation in the cash burn but ultimately the debt needs to be addressed through restructuring if this is to be sustainable. I think it can be done and steps are being made (Burnley).

I am sceptical as to PLT. I wonder if it is more that they could not get a decent asking price rather than a marked turnaround in trading.

I guess we will find out within next 7 days.

Im expecting trading update on Tuesday 31st (not 24th).

I sense mgmt struggle with deadlines (set by themselves) and that there is always something they are waiting on hence why they hold off. At best, we may get a KM licensing deal if numbers are not looking good or annualised cost savings going forward from Burnley closure.

I be interested to know what they mean by:

"continued momentum in our Debenhams brand, a discernible improvement in the performance of our Youth Brands and accelerated progress on our transformation plan. All our Brands continue to trade profitably.

We are particularly pleased with the pace and scale of PLT's turnaround and the resulting material improvement in profitability."

We were told in January to expect a trading update in March.

I can understand why they would hold off releasing statements when markets are volatile, but hopefully markets are pulling back from a precipice with Trump making dovish noises (admittedly unpredictable).

If markets do stabilise, then we could get statement over next couple days but judging by history, I will assume that the trading update is Tuesday. Personally, I would recommend getting statement out when market is calm.

The market statement made in January by mgmt was very bullish in terms of trading performance although I admit to being apprehensive.

Ashley's strategy is interesting. about 3-4ppt of his holding is through selling Puts (the buyer of puts can sell to him Asos shares at agreed price) for which Ashley earns a premium.

He doesn't get the voting rights (i understand) on Puts his sold but he may actually build a large stake in company if its share price falls. Seems a clever strategy. It indicates that: 1) Ashley is happy to buy more Asos if share price does fall; and 2) he is getting paid a premium even if they are not exercised.

I agree that Zalando and ASOS would be a good fit. Much more so than ASOS and Boohoo.

It’s a shame that ASOS has got itself into such a weak position. Arguably it should be as strong as Zalando that it should be a merger of equals.

If Zalando wants European dominance, then ASOS would give it a UK stronghold. ASOS has the quality that high quality brands (eg Nike) would be happy to sell their merchandise through the ASOS distribution channel.

I be happy to take Zalando shares if a generous offer was made.

Zalando is impressive. If you strip out impact of acquisition, revenue grew +6.9% on pro forma basis. It is guided to grow 3-8% pro forms in following fiscal year.