@onsolidground, to provide a bit of balance, have you read the glassdoor reviews / spoken to current or past employees? There is a reason for the high number of vacancies. I don't think it's just growth but also high turnover. The new CEO of ingenuity is widely seen as refreshing by many there but issues still exist internally with the red tape/ lack of structure/ bureaucracy
Interested to know people's views here.
Here is the article on the Government website
My understanding is that all firms had until 1 Jan 2022 to ensure that any claims were accurate and only after this date, the CMA would review any greenwashing claims that contravene the code.
I think there investigation would therefore only be limited to claims made online or continue to be online (eg posts prior to this period but still say accessible on Instagram or other social media) from 1 Jan 2022.
Therefore, if Boohoo made an unsubstantiated claim prior to this date which has been removed or updated, I don't think they would be in trouble.
I would be surprised if Boohoo would be careless enough to greenwash after all the damage caused by the Leicester scandal. You would think steps taken since then would be genuine and show that they have learnt from their mistakes.
I think I would be annoyed if the claims are substantiated as it would destroy any potential uplift in their ESG credentials.
What people don't realise is that it is impossible to try on clothes over the weekend and evenings - go to Oxford Street - the stores are packed and understaffed (due to the labour shortage) - it is actually impossible to try on clothes because of the queue to line up, try on and then check out. Hence I think Zara have got it right - Buy online, free delivery, try on and keep what you like and return to store for free or pay a nominal charge. This gives total flexibility and where Boohoo are missing out. Just opening 2/3 stores in high footfall areas will get people flocking to their stores. Rent is cheap due to the scale of companies going bust or reducing shops. It's all about the right balance.
The above, supplemented by wholesale partnerships is the winning formula IMO.
The High Street is not dead and Online is not the Messiah - you need a combination of both to succeed.
RE Shein - I am confused on the target audience for this as the arguments you use to counteract Boohoo apply to Shein?
Shein may be cheap but you don't know what size you're getting, long lead time and questionable ESG practices. The only difference is that they don't charge for returns - but seriously is £2 really going to put people off? That too students can get Boohoo Premier for FREE and don't need to pay for returns!
WW - i disagree - a share price decline of this magnitude does warrant action - there have been many instances where companies have come out to state they know of no reason why the share price has declined (so significantly). We're talking about a 61% between May and August - the May price should have been the floor!
Apologies all, my choice of words were not correct. I did say 'feels like a ponzi scheme'
It's more frustration and heat of the moment, like many of us all feel for the lack of action. We know the share price is detached from the company but I'm astonished by the lack of defence by IR/Insiders.
Apologies for my poor choice of words.
I'm not sure why people are so adamant that there will be a bounce back. Noone knows what's going to happen next and the IR team and MM are willingly destroying the share price. All it would take is a one liner to say that a full update will be given in September but trading continues to be in line with the Boards expectations and a full update will be given in September. Silence is golden and nothing is stopping this downward pressure.
My issue is that there is so much lack of clarity, smoke and mirrors that you begin to think whether you're stuck in a ponzi scheme.
Were the bids really bids or tabled by friendly parties? Is its growth or just acquisitions that make it seem revenue is growing. Is the chairman just a figurehead to try and appease the market? Does MM have any intention to ever give up his golden share?
Who knows? There is a lot that needs to be fixed before an upward trend.
Expect to be deep deep underwater for some time.
What does that say about your biggest holders dumping 20m shares... lack of confidence in management?
I am sure we will be met with dead silence by IR - this will certainly do little to allay concerns.
Actually T4G - apologies - I do actually think you are right; I went on the London Stock Exchange website to see the type of trades being executed - a lot come with the Algo flag:
So i do think there is a lot of merit in what you say.
Interesting that shorttracker still hasn't been updated since Thursday - I really want to see the cause of the spike on Thurs and whether shorts closed or not.
I don't think it jumped just on the back of the Next/ Zalando trading updates.
T4g - may be the fact that T Rowe have dumped 5% - can cause nerves in smaller investors not just the algos? Investors could also want to de risk and take the losses now rather than larger losses down the road. General poor sentiment can cause this - just like how the stock market moves based on how the Fed is perceived to react - if dovish and soft landing the share prices of stocks rise and if hawkish they fall.
I don't think everything can be blamed on the algos.
Read my post. I have not talked about age. I talked about individuals graduating in 2014 who became the CEO of Nutrition in 2019. Please tell me how that is discriminatory or possible that someone can rise that fast based on merit.
How can someone with 5 years experience (at the point at which they were made CEO of nutrition) be the head of a division in a public company for which they have no prior experience?
Rather than your unfounded claims that I am discrimating, please give an answer to this?
Yep not doing too well in the USA which explains the massive decrease in sales due to time to ship. They ship everything from the UK so I would be disappointed if I received something after a week/10 days and it didn't fit properly.
Hence the new US DC would be a game changer as will allow next day delivery. Issue is that by the time its live, Boo may have lost its goodwill and market share.
They should have spent their money on expediting the US DC rather than the UK HQ.
Thanks T4G - although we don't know what prices cotton has been purchased for and whether the higher prices have been hedged to bring input costs lower? The good thing for Boo, once the US DC is up, is that they can source their cotton from the US and manufacture and distribute in the US directly, saving cost and increasing margins.
I think a key point in recovery will be the US DC (assuming still on track) as that may help win back some of the market share with faster delivery times and more efficient production.
The more that Boo can automate to bring down costs, the better.
Narrative is super important here - I hope management have the brain to state that input costs are lower due to reining in of costs, automation + test and repeat model and sales have increased with respect to increased wholesale partnerships, reduced returns and more people going out due to the good weather. This coupled with a positive outlook that there expectation that growth will increase on the opening of the new US DC will help drive the share price up.
My biggest fear is sales - this will be the biggest indication of price sensitivity and whether the core target market are being affected by the state of the economy. If sales grow then I think the share price will rebound, but if sales decrease - we could have an issue.
That said, increased US sales could benefit Boohoo - the $ is v strong vs the £ and therefore, greater sales stateside will translate to a higher translated sales figure and profit margin.