RE: First Broker Target - Shore Capital Markets 39030 Sep 2020 18:46
RS - I agree the US growth could be astronomical there. I though the whole management team presented amazingly well with clear messages.
From my notes I've put a * informant if each item I think is stand out for me:
*- Admit issues found in Leicester
*- Have ability to drive positive change & stop issues reoccurring
*- Ambition to be fashion e-commerce leader
*- Big investment in UK textile manufacturing industry
- Not afraid to act quickly
- 70,000 styles of clothing now!
*- UK contribution - 1.5B sales, 5,000 direct jobs, saving UK brands, 80m paid Corp Tax
- Soucing more in Asia & Europe
*- Directors of Sustainability & Compliance team in place
*- Compliance programme for suppliers & manufacturing sub-contractors through accredited 3rd-party
*- Group terminated many relationships from audits
*- Will publish a list of approved audited suppliers
*- Rolling out compliance globally
- Reducing waste improvements going well
- Invested in technology for auditing & compliance
*- New supplier portal & app
*- State of the Art facility in Leicester for not just Boohoo to help model legal manufacturing & train new people with 250 new jobs. Community access & not for profit - awesome!
- Fewer suppliers but more volume
*- Audit everyone in 12 months, publish list in 6 months
*- Implementing ALL QC recommendations
*- Enhancing BoD compliance oversight with new ESG board member - Awesome!
*- Fantastic first Half Year for group with record sales & record profit
*- Boohoo & Leicester will flourish together
- Margins wont suffer but preference is to use Leicester
*- 4.5m dresses sold but only 0.3% are the £5 dress - most £15-£35 -12% margin on £5 dress as it helps marketing
*- Not disposable fashion & ethically sourced
*- Sales up 45% - strong demand in all geographies
*- Gross Profit up 47%
*- Net cash 344.9M
*- UK 37% up, US 83% up (HUGE!!), Rest of Europe & RoW all growing
*- Cashflow strong +147M
- PLT fully owned
*- Oasis & Warehouse fully integrated
*- Customer KPIs - more customers +4.4M with 34% increase in orders!
*- Increasing Capex Burnley & Sheffield spend to achieve 3.6B sales!!!!! WOW!
*- Guidance 28% to 32% growth for FY upgraded - nice!
- VERY COOL video on all their 9 brands!
*- 36m followers on social media
*- Lots of new celebrity influencers
*- Brands cover 13 -45 years of age
- Karen Millen & Coast growing & brands extended
- Launched TV advertising this year
- Oasis & Warehouse targeting every & urban women
*- Very strong platform to deliver change close to achieve 1.5B sales through 9 brands
*- Strong financial position
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