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I think we will get past that in weeks.
Shorters are in for a very hard time.
All IMHO DYOR
Happy
Clear signs that inflation and interest rates have peaked.
Note the easing price of Brent now sitting just about $80 (a bit sad because I own oil shares, but great for Boohoo).
Note Savilles bullish forecast on the property market this morning: https://www.theguardian.com/money/2023/nov/08/uk-housing-market-is-past-its-peak-pain-declares-savills
Note food inflation appears to be slowing dramatically: https://news.sky.com/story/grocery-inflation-back-in-single-digits-for-first-time-in-16-months-13002151
All of above provide a much more benign economic backdrop for Boohoo to reaccelerate sales growth as we head into crucial Christmas trading period.
All IMHO DYOR
Happy
PJT
I am actually very positive about the results, but rather than reinstating a 1p dividend, they should have waited until they were ready to restore a material payout. A 1p dividend will not encourage any income investors.
All IMHO DYOR
Happy
This is not correct: "Except we've already recently had a forecast from BOO sales will decline 17% and from ASOS by 5-15%"
From Boohoo's outlook statement:
"The Group's focus remains on executing its back to growth strategy through disciplined investments across product, price and proposition. Given the slower volume recovery than previously anticipated and the continued targeting of more profitable sales within our labels, revenues for the year ending 28 February 2024 ("FY24") are now expected to decline by 12% to 17%."
They gave a range of 12% to 17% but, crucially, that is largely predicated on the slower volume recovery being maintained into H2. What they don't have is Christmas trading data, which will be critical and could easily change the outlook.
I am basing my optimism on their actual product ranges, merchandising and price, which I have previously not been a fan until now. Through this tough period, the huge effort the team put in on product, merchandising, marketing and price is starting to yield very visible and exciting improvements.
You only need to sit through Christmas into early new year to find out if I am right, but by then the SP will already be pricing in a material recovery.
All IMHO DYOR
Happy
These are very strong results.
We should be up 5% today.
All IMHO DYOR
Happy
Of course M&S (which I also own) is a totally different business. But the good cheer on the high street will improve sentiment across the board.
I am very impressed by Boohoo's marketing and product ranges both at Boohoom.com and Debenhams, and absolutely convinced they will be well received this Christmas.
We will return to material sales growth very soon.
All IMHO DYOR
Happy
Agree it's a very positive update and SP should rise.
But really what is the point of reinstating a 1p dividend? It would be better if they hadn't bothered.
All IMHO DYOR
Happy
Thanks Jeremy.
I, too, see multiple Dojis and my big Bollinger Band just snapped. All extremely bullish signals.
I will burn my candle at both ends to tell everyone that this will rise like a good soufflé.
Have a great evening.
All IMHO DYOR
Happy
Being a growth stock, our SP will be inversely correlated to falling interest rates.
And this is the no.1 FOMO stock in the London Stock Exchange. We hit 400 in June 2020. We can definitely do it again over the next few years.
Please, please join the ride...
All IMHO DYOR
Happy
So much fun seeing them rise.
Fly my 10-bagger babies, fly.
All IMHO DYOR
Happy
i think it's absolutely fantastic that we manufacture in the uk.
i want us to create jobs in the uk and become a fabric of of the uk economy (hehehe: pun intended). we shouldn't compete on price alone. we need to differentiate our products and invest in our brand, which we are doing. boohoo is cool, hip and western. shein is a front for a chinese concentration camp.
when china invades taiwan, we won't have to move our manufacturing out of china! we will be worth £100 per share when shein and temu are sanctioned lol!
i agree india is a great place to develop ties but ****stan is much cheaper so ok from my viewpoint.
all imho dyor
happy
Potential catalysts:
- Good Christmas sales that contrast with weak prior guidance (I stress they have product, price, merchandising and inventory exactly where it needs to be. We are set for a STRONG Christmas in my view.)
- Easing of interest rates and cost of living pressures. Huw Pill - Deputy BOE Governor - indicated first cut by middle of next year. But bonds yields have already eased significantly. Pressures on consumer are easing.
- Much better sales throughput in US as distribution hub ramps up.
100p by year end then the moon...
All IMHO DYOR
Happy
Let the shorters sweat a little this week before the real Global Boiling in the weeks and months ahead!
All IMHO DYOR
Happy
I have canvassed the opinion of nieces and nephews who are Boohoo's target demographic age-wise. They are unanimous in their opinion that the new ranges have never looked so good and on-trend.
I think Kamani's "boom time" comment was probably an unguarded throwaway remark, but I am increasingly bullish that the sales tide has turned. We could get an impromptu upgrade of guidance at any time.
All IMHO DYOR
Happy
At 400 (2020), a hatchet job could do real damage to the SP, as it did. At 30 - with the most of the allegations tired old hat - the publicity merely draws attention to an excellently managed and highly commercial operation that is hugely undervalued.
I may top up tomorrow.
All IMHO DYOR
Happy
I would be embarrassed if I were the BBC but they have a thick skin.
Main takeaway from the documentary is management is laser-focussed on protecting gross margins, as they should be. Looks a slick operation.
We are providing decent, flexible jobs in deprived communities; jobs that would otherwise be outsourced to a Uighur concentration camp in China. Make a documentary on that BBC.
Onwards and upwards tomorrow.
All IMHO DYOR
Happy
Nm
If he buy any more here, we will breach 40p.
The free float is small and shorters very exposed.
This is great fun lol.
All IMHO DYOR
Happy
Yes, not heard the last.
300+ in 3 years. A 10-bagger.
All IMHO DYOR
Happy
Hehehe - your trolling not working any more? Triggered much?
We will see. With a fair wind, we might even test 40 this week.
Once the shorts panic, they will struggle to find the shares.
Throw in rumours of a good Christmas and we will be having Roasted shorter turkeys for Christmas lol.
All IMHO DYOR
Happy