Member Info for FED1

They essentially released the full year results with the trading update in March. So it is odd that they delayed results.

They did say they would give a further update on business review in full year results. I would logically assume that they have something substantial to say if it merits delaying results.

The trading update also said that Debenhams was now central to investment case following business review and it will be rolling out model. This alone is not enough of a reason to delay results if this is the conclusion of business review. It seems we are going to have another debt restructuring but I am hoping for more. I don’t know if there is anything else in terms of releasing value.

I wonder if RevB will become a subsidiary. Dan was hosting beauty partners at Chelsea Flower Show.

Agreed that Shein doesn’t belong on LsE and HK is right place. The West needs to level playing field:

1) end diminimus

2) enforce regulations on clothing quality and sales practices - clothing shouldn’t give you cancer!

3) ensure these global platforms are adhering to proper auditing of supply chain and not using slave labour.

The Uk then needs to implement policies to support investment in smaller UK companies. I read that UK smaller companies have the biggest discount to large cap peers.

https://moneyweek.com/investments/uk-stock-markets/should-you-invest-in-uk-small-caps

Poison pill means the ability to issue shares to minorities to dilute a hostile bid 😜

Given what has happened to Temu share price, I’m glad UK retail investors have been spared the hyped UK Shien IPO. It would have been a disaster. I don’t think Shien is a trophy listing for LSE.

I think Dan needs to realise that if he wants the market to believe in the investment thesis that Debs is a high growth, low capital platform, capable of growing GMV and turning a profit, then he needs to communicate with said market.

This means holding CM days when you say, and not delaying results.

I am reserving judgement but there better be a good reason as to why results have been delayed a month. If the next results says business review is ongoing, then I wont be impressed.

There are three possible outcomes:

Boohoo is overvalued and share price will fall (most likely it will go bust or completely irrelevant)

Boohoo is fairly valued (the share price reflects that revenues will continue to fall markedly from current levels before it can stabilise)

Boohoo is undervalued ( Dan Finlay can stabilise this business with £1bn plus in rev's and get a margin from these sales)

Ultimately, we can only guess at the probabilities. However, for longer term investors who can wait, you would hope that the latter two have a probability of >50%!

I hope there is a valid reason for delaying earnings by one month.

I’m currently giving Dan Finlay the benefit of the doubt in terms of failing to deliver CM day and delaying results. I trust this ongoing business review releases shareholder value.

Even I’m struggling to understand the thesis now. If I wasn’t already invested and sitting on losses, I wouldn’t put new money in.

Frasers want to bring Debs back to high st.

But not with Kamani.

Polvsen wants to bring TopShop back to high street. But not with Calamonte.

They should have at least got the old TopShop on Oxford St by now.

Selling TopShop has done diddly-Squat for ASOS share price.

*optionality not optionally

Although I now feel business review (aka the “credible plan”) has limited scope to get me to 50p

Valuable Assets: Boo, Debs, PLT, KM

Main reason for holding: this is a £1.2bn sales business with strong brands. It has a corporate shareholder with deep pockets (Frasers). The stable of brands and neutral balance sheet has optionally. This will fly on a marked improvement in sales.

Reason to sell: this is in terminal decline with poor governance structure. Sales falling faster creating operational deleveraging and negative cash flow. Cost base will kill shareholder value. Dan too weak to turnaround.

Don’t say 12p as rationale for selling. Reasoned arguments only.

I think both Bfd and Southcoast are right. I have respect for both posters.

I’ve lost a lot of money on this turkey. SCB is actually very intelligent in his view of mgmt. but yes, it is a bit too pessimistic. Bfd calls it out as unbalanced. He has also lost money but keeps defending a poor mgmt team.

Let’s reset:

1) what is the main investment thesis (one only) for holding?

2) what is the main investment thesis for selling (one-only)?

Don’t worry peeps, the Board of Directors have a credible plan.

They told us last September. Just hold tight.

The only arbitrator I care about is the share price.

Seems to be telling me that Kamani should leave.

Reardon - I agree de minimus needs to be cut.

Kamani had sweatshops in Leicester that had people on low wages shut down. This was abhorrent to the Champagne Socialist!

It seems odd then that the Labour govt welcome a Shein listing and offer Shein a tax break to use exploitative labour practises outside of the UK.

The textile and cheap manufacturing are the bedrock of China's economy. Shein and Temu are a govt store front.

Illogical to give them a tax advantage versus UK businesses.

Kamani's success in the rag trade was that he was a market trader with a value proposition.

Shein came along.....

He was unable to invest in pricing - he was undercut by a better market trader.

Pedro - I do not believe this company is going bust. It is capital light and capital allocation decisions have clearly changed. Yes there are governance issues, but hopefully these can be resolved.

Still bullish - just annoyed!

One of the key investments for retailers is to 'invest in pricing' to keep your proposition relevant.

It why you go to an incumbent supermarket and see "Aldi Price Match"

Boo operates in fast fashion in the wash it three times, then chuck it out space. As does Shein.

Boo could have had a war chest to invest in pricing and keep its value proposition relevant to the 20-somethings. However, it squandered it on poor capital allocation.

You cannot invest in pricing if you 'got no money'.

I bought this stock a couple of years ago and traded in and out. My cost price is low 50s.

My original investment thesis was I believed mgmt when they said that the revenue declines were just cyclical headwinds following over exuberance in expanding during Covid. I was not aware of the impact of Shein. I believed in the strategy to cut costs and expand in US.

The constant wait until next fiscal year, that's the failure.

Now we have to believe in Debenhams and a rollout of marketplace.

Bfd I am hopeful of a share price recovery.

I really hope Dan can deliver.

But I cannot look back on the past couple of years with rose-tinted glasses.

I think one thing that can underpin share price at next results if for Kamani to step down. He is culpable.