Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
PP1 - do us all a favour.
https://invezz.com/news/2023/05/17/shein-boohoo-competitor-slashes-its-valuation-by-44-billion/
"Shein is going through growth headwinds. The company raised $2 billion at a $66 billion valuation. It is facing substantial challenges, including questions from US policymakers."
Just wait until their ESG is blown up when they list on the NYSE!
Posting a link from one of Jongle's favourite sites.
@RonnieH can you post where you are getting this from? - cheers!
JChrist have you read the RNS or MotleyFool?
I think today's will open lower as all the articles are talking about Boohoo 'plummeting to a loss' but watch how later in the afternoon it'll probably recover because people actually read the damn RNS and realise, they aren't going bankrupt, they have a plan to bounceback.
They have automated, cut back on holding inventory, generated cash flow, not seeking cash/equity raise from investors and actually have a plan to bounce back. ASOS still in recovery mode which gives Boohoo the advantage and potential market share.
Shein aren't competition - they will get found out when they list - remember they are backed by Seqouia who probably control the narrative on negative media!
Media/ Obeservers
Already putting a negative slant on this and focusing on the loss and declining sales - THIS COMPANY IS PRICED TO FAIL!
It's annoying that commentators are quick to get clickbait out without reading the full RNS.
The Baron Investments Tweet is a great example of how the results are ahead of market expectations but there is truth in what T4G says - this share will be depressed down with negative articles.
Slightly annoying they are comparing to 3 years prior but
- Looks like Revb 27.6% shares were bought for an average of 19p - they said they paid £15m for the shares.
- FCF is a great advantage
- RCF hasn't been touched and actually £5m cash - so no equity raised as suggested by some and none of the issues presented by ASOS
- Inventory very well managed
- Pathway to growth illustrated with automation
Boohoo have made the steps and are around 2 years ahead of ASOS in this regard.
Most of the loss is as a result of 'exceptional items' which if I read correctly is mainly due to automation costs.
These results need to be seen in light of the economic backdrop... anyone surviving the last year in retail should be backed. They have made it through the toughest period with raw materials, freight costs, and labour costs sky rocketing but have overcome this and have become leaner and more dynamic.
I am pleasantly surprised.
I am sure the market will focus on the loss widening and ignore the good stuff stated in the results.
No way this share deserves to be in the 30s as it is NOT a company in distress.
Ragtrade may have better insights into Project Atlantic launch dates or background. Haven't heard from him in a while.
Interesting observations today:
Looks like Project Atlantic - Boohoo's move to the US is in motion and will looks to launch mid/end June - see post below which says '61 days to go and posted 3 weeks ago):
https://www.linkedin.com/posts/sophie-clark-296b5ab9_conference-supplychain-boohoofamily-activity-7054889645783818240-qqp7?utm_source=share&utm_medium=member_desktop
Members from the DHL team were present here: Ericka Duron - Vice President, Human Resources eCommerce at DHL Supply Chain & Bekim Krkuti - Vice President, Operations - DHL eCommerce sector.
Remember this is DHL's role: https://www.dhl.com/us-en/home/press/press-archive/2022/dhl-supply-chain-partners-with-uk-based-fashion-retailer-boohoo-to-expand-in-the-us.html
This is a BIG development and no signs of this being delayed as suggested by some due to Capex issues.
Also interesting to see that there is only one position being advertised for Boohoo US roles in Elizabethtown via Linkedin so would assume that they have been filled - majority of recruitment being done by DHL.
https://www.linkedin.com/jobs/search/?currentJobId=3554490016&keywords=boohoo%20elizabethtown
Was hoping RevB would post an update but unfortunately does not look to be the case ahead of tomorrow's results.
Tomorrow's key point will be the forward looking update; hopefully for a change the word headwinds will not appear and will be replaced by tailwinds.
Does anyone actually know what happened to Numis? Did they get a pat of the back from the FCA? Or a meaningless fine? I don't think that was ever reported? Did they simply just get away with it? Same with the Telegraph when they made a fake story on supplier disputes. The share price dropped by 20% after that and again, what happened... All the Telegraph did was issue an apology... By that time share was already manipulated. Why didn't THG sue for this as arguably they never recovered as shareholders got hurt...
There is a merit to what MM says but some things like profit warnings and stating ambitious growth targets and then going back on them is MM's doing.
Who said you had to be crazy to sell now... Well this is why. You can't trust the idiot that is the CEO.
The only exit is a takeover. This will never turn a profit.
Multiple profit warnings and false hope over take overs
Knew this would happen and happy I derisked. Too many people back MM. Who's going to trust him now.
There is no chance ever of a takeover and the company is not well run enough to ever achieve the price that would have been offered.
Share price will go straight into auction and drop to the 50s/60s today.
They are trying to limit the drop by reiterating guidance but no one can trust that due to multiple profit warnings.
Sorry what were you saying about waffle T4G?
Share price now in the 30s. Article posted below about Umar leaving and Asos down 10%. Online retail doesn't look great does it?
He started off a process that was highly preliminary because he couldn't hold is nerve with a throw away comment in a newspaper.
As a result of this, Apollo were already against the clock to complete their due diligence. Yes, an extension could be granted but MM is an idiot for announcing when he did, because he just can't control himself.
Can see this dropping to the 30s today. Incredibly embarrassing. I just can't see Boohoo showing the resilience of Next or ever getting close to £1.
The only way out is a takeover. Hopefully a matter of time for the Kamanis to get fed up and sell out. Umar has already moved on to new ventures.
Why don't you do a little bit of research yourself and prove me wrong.
You are one of the people who rely on this board to make your investment decisions. Try doing some of your own research.
SCB - frankly couldn't care less what you think. Also years doesn't have an apostrophe.
The share price tanking every time before results day scb.
Look at the trends pre results.
T4G - perhaps there is an element of suppressed market price but Boohoo have showed no positive news to actually prompt a re-rate. Today's price is embarrassing and we know how leaky this share is. Not feeling good about results next week and they really need to have a positive forward looking statement to counteract any further drop.
Right now sales are declining, costs (wages/energy) are increasing and freight cost is decreasing. New US DC and Customs Centre should be a positive. Re the settlement, a statement to say that Boohoo expects the amount of take up to be within pre-existing legal provisions would be useful.
The share price has been here for a year with no signs of improvement. Unfortunately, the only thing that will change matters is if they go private.
The FCA are toothless.
Citypie - clearly you have short memory: "Crazy whoever is selling but at least there are buyers out there"
Clearly questioning those who are selling.
@hereshopin - I still have my shares as these were oversold yesterday. I only held 22,500 shares - sold 12,500 at 96p and hold 10,000 shares at an average of 70p. It's a small investment compared to others on this board.
All I am saying is I empathise with those who are selling and fundementally disagree with people who berate people for selling as there are very valid reasons to do so and not all people share the same attitude to risk.
This is the problem with this board - get vilified for having an opinion or view.
lol - ok CityPie.
I am a shareholder and disgruntled one at that. But honestly, couldn't give two 5hits.
Anyone on this board can do as they please. No one knows where this is going and that remains a fact. I wish you well and sincerely hope you make a good ROI.
All I am saying is don't question people who want to sell. People have lower base costs and realising a smaller profit now is a smarter move for the risk averse who are afraid of no deal.
@Citypie if that was a reply to me, look at my history of posts. I suggested something similar would happen before the drop and that people should consider de-risking.