Member Info for Hexam

Common sense prevails and revolt averted (or successful depending on how you look at it).

"Resolution 3 proposed the adoption of the boohoo Incentive Plan (the Incentive Plan). Since publication of the Notice of AGM on 23 May 2024, the Company has engaged with certain shareholders regarding Resolution 3 and has decided not to implement the Incentive Plan at this time. The Company will consider further engagement with shareholders on this matter in the future.

The withdrawal of Resolution 3 does not affect the validity of the Notice of AGM, the proxy form or any proxy votes already submitted in respect of the remaining resolutions to be proposed at the AGM. The numbering of all other proposed resolutions at the AGM remains unchanged. Arrangements for the AGM are unchanged from those previously notified.

The Executive Directors have also opted to waive their entire bonus entitlement for the financial year ended 29 February 2024. The Company has published a restated disclosure of the Directors' single-figure total remuneration for the year ended 29 February 2024 on the Company's website https://www.boohooplc.com/investors/results-centre/year/2024.htm."

"Nope Hexam, what i asked you to provide was a graph (or data) over a period of years as that is the only way to look at performance."

Yes you did ask me that and I said that was nonsense and I still do. But if it keeps you happy...

Growth since the year to Feb 20 (i.e. over the last 4 years since the final year before Covid).

Online total up 62% in four years to Feb 24.

Textile, clothing and footwear stores - online up 64%.

Non-store on-line retailing up 48%.

BOOHOO up 18%

"I did ask if you could provide the specific graph for online retail for the past few years to see if that statement is true"

It's not on the graphs it is in the underlying data sheets.

Online total up 7% in year to Feb 24.

Textile, clothing and footwear stores - online up 11%.

Non-store on-line retailing up 6%.

BOOHOO down 16% (UK)

The fact is both BOO and ASOS are underperforming the online market generally and, it appears, for clothing specifically too as far as revenues go so not sure why it matters to name any other pure online clothing companies - somebody is eating into their market share however you describe them.

Maybe their profitability has suffered purely because of the particular nature of their business and not because of any management failings but I find that very hard to believe. I also accept it is easy to talk about things like the acquisitions and the price strategy in hindsight but it's still the case that these things didn't work out and different management may have tried different things.

Personally I think both BOO and ASOS both grew complacent, possibly even arrogant, because of their rapid growth and were not able to react quickly enough to the garden becoming much less rosy whereas other businesses that have seen both good times and bad times before were better able to respond.

Some management teams must be making a better fist of it though as both ASOS and BOO have seen revenues fall in a rising market (according the ONS figures) over the last year (to Feb) so there must be others that have not only grown in line with market but have exceeded that growth.

As for profitability obviously all companies have suffered cost challenges and ASOS and BOOHOO probably more than most because of their models - but could neither have done more, or things differently, or more quickly to support the bottom line? After all, as well as the questionable brand acquisitions, one thing that BOO did do was deliberately hold down prices to try and protect revenue but that seemed to have failed anyway - and at the further expense of profits. They are now focused more on profitability which is good but arguably it took too long to come to that view (including the cost cutting) though they are probably ahead of ASOS in that respect - especially in controlling inventory.

All said and done ASOS and BOO have both published poor results when other companies are posting good ones and I don't think it can all just be blamed on the particular demographics, diversity of offerings or whatever compared to the likes of M&S, Next etc. Some of it is likely to be the questionable decisions of management too (the latest of which for BOO is the tone deaf and self-serving move on bonuses).

Yes, the payment schedule is already out there but there should be a PRN to confirm payments have been received and that would be good news as the payments were still conditional (on the Venice Court of Appeal). So conversely it could still be bad news if the conditions aren't met.

I agree that anybody suggesting they know when the testing news will land or whether it will definitely be positive or negative either has an agenda or is simply being silly. We may all have strong views on this but none of us can be certain.

To be fair he may be referring to the court settlement as the first instalment should already have been received and the second instalment is due by tomorrow I think. So there should be good news on this front very soon assuming the payments weren't voided.

Obviously nobody, let alone everybody, can know any other good news is coming soon (or bad news for that matter) so that would be just agenda driven nonsense.

News on testing must come eventually though and whilst we all have opinions on what that news will be they are all just that - opinions, not knowledge.

"Here in the UK main market you just die a long drawn out death."

Indeed - I remember the furore from shareholders (including many on this board) when argo was raising funds through new equity and PW promised to switch more to other means of raising funds. A shedload of debt later and the rest of history!

Just goes to show how the UK shareholders/market has a different attitude to equity raises - and why they shouldn't be listened to. Another example of the weakness shown by PW - pandering to shareholders.

I’ll remind you of that the next time SCB posts one of his dodgy stats :-)

I’m not sure why the year to Feb 23 was unrepresentative or to Feb 24? Anyway, as I say, I’m sure you wouldn’t be quite so picky if the comparison was favourable.

What? I’m comparing the last year to the year before and using ONS for market stats and BOO’s accounts for their numbers - and that’s it. If you’re saying the market can’t be sized then any comment on here involving the market is meaningless - both good and bad.

It’s odd that if the headline numbers are positive you take them as they are - if not then you try to find any which way to quibble about whether they are representative. Or perhaps it’s not so odd. Just bias.

I was just going by what the company said which was that they held prices to improve/retain market share.

In any event, however many excuses you come up with or caveats you make the fact remains that they significantly underperformed the market in the last reporting year - however you measure that market.

Maybe they can turn it around this year though their not giving a revenue outlook is hardly encouraging.

And for balance at least Debenhams did seem to outperform - posting what looks like a 10% increase or so.

I’m looking at both overall online retail and retail fashion only. Either way the story is similar.

And I’m looking at value not volume as that is what matters and is irrespective of what BOO chose to do with their pricing (as the whole point of them holding prices was to try and boost volumes).

“ Therefore the numbers are bound to be lower than they were a year or two ago.”

That is simply not true. The ONS figures clearly show online sales were higher in the year up to February 2024 than the year up to February 2023 so if BOO sales has been in line with the market they would have gone UP - not been 17% down.

Yes, the market numbers are not yet back to pre-COVID levels but they still up year on year.

I can back it up - with the ONS stats that appear to be your bible. Clearly the online market has not gone down 17% to February and so therefore BOO have underperformed.

https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/february2024

BOO revenue is down 17%. I don’t believe the online market (either generally or just clothing) was down that much over the same period (certainly according to comments on this board). That would equal underperformance.

So are you saying that all the comments here over the past year saying how well online was doing have been wrong?

Are you saying that online sales up to February were much lower than they were the previous year? 17% lower?

Bottom line is that BOO has underperformed the market but if you think that’s wrong would be happy to consider any evidence that suggests otherwise - or you could just continue with the insults.

I think the point is that online sales have been pretty good for a while now (as many on this board keep telling us each month) but it hasn’t done BOO (or ASOS) much good so why the difference now - especially as sales are actually down in April?

"Why are people even discussing how many shares they have?"

Because someone who bangs on about honesty and tries to take the moral high ground clearly lied about their own investment. You say that Obelix does have the 10m+ shares he claimed. Fine, I'll take your word for it but that means he obviously wasn't telling the truth yesterday when he claimed he had only recently invested and that his total investment was £2k - clearly because he though he was posting on his other ID.

Can you imagine the flak I would get if I set up another account and pretended to have invested £100k but had sold at a loss because I was disillusioned with progress? And that flak would be fully deserved. But as it is Obelix, who is a ramper, it is OK and he didn't really mean any harm trying to promote his views under a fake ID with a fake story.

Just highlighting the hypocrisy.

I do agree though it would be far better if the messages stuck to QBT but I don't think it would necessarily make the board any pleasanter if the past attacks on posters that do is anything to go by.

So why did you say yesterday that you had only invested £2k?

You are right Obelix, this is a comedy BB, and you provide much of it. Thank you :-)