Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
PR damages sales and sales damage profit expectations and profit expectations damage the share price.
City folk when seeing the PR disaster today will be going sort on Bohoo on Monday and then offloading their share holdings to drive the price down.
It is a monumental PR disaster.
Which is why I said long term it will recover. But short term the teenage girls will all express their outrage by buying elsewhere.
Monday however will be a share price bloodbath no matter what you say on here.
Your understanding of how business and the stock market works seems very poor. Or are you just trying to mislead people into thinking that everything will be ok on Monday?
People need to take advantage of the volatility and the fall that will happen on Monday to buy more shares and increase their holdings.
but as I keep saying long term the share price will recover.
"Let this be a warning to those who are exploiting people in sweatshops like these for their own commercial gain. This is just the start. What you are doing is illegal, it will not be tolerated and we are coming after you."
Up until this moment, the unsavory face of fast fashion had been epitomised by the dreadful disaster at Rana Plaza when the factory collapsed in April 2013, killing 1,134 workers. However, it seems that Boohoo and the factories in Leicester which supply them, are now rapidly assuming that mantle.
However, Boohoo has form in this regard. Back in 2017, Channel Four Dispatches found that workers in a Boohoo factory were given "strikes" for such as smiling or checking their mobile phones.
And according to The Daily Mail, in October 2018, Boohoo were named and shamed in Parliament for producing £5 dresses which one expert warned would be of such low quality, charity shops would snub them.
But try telling a teenager that there'll be no more Nasty Gal jumpsuits or Pretty Little Thing beer garden outfits? Because the sad truth is that while we publicly like to display our outrage, privately it remains pretty much business as usual.
Marks and Spencer may have a market capitalisation of "only" £1.9 billion, half that of Boohoo, however, if you had to pick one which will still be around by the time we see out this decade, which one would you choose?
https://www.forbes.com/sites/andrewbusby/2020/07/05/with-allegations-of-slavery-and-unsafe-working-conditions-is-boohoo-the-unacceptable-face-of-fast-fashion/#36ed55216e9d
This is just a small part of the PR damage that has been caused to Boohoo this weekend.
Monday will be a bloodbath.
Forbes says: With Allegations Of Slavery And Unsafe Working Conditions, Is Boohoo The Unacceptable Face Of Fast Fashion?
Boohoo, owner of brands such as Pretty Little Thing and Nasty Girl has found itself embroiled in yet more controversy with claims that it is paying workers as little as £3.50 an hour according to an undercover Sunday Times investigation.
And this comes just days after it was revealed that a likely source of the increase in COVID-19 in the Leicester area, leading to a full lockdown being imposed last week, is from the garment factories in the City. It is thought that up to 75% to 80% of the garments made in Leicester factories are destined for Boohoo.
Even before these revelations, investors were revolting against a planned remuneration package which would see its leadership team net a total of £150 million between them if the market capitalisation of Boohoo reached £6 billion. It currently stands at £4.9 billion, more than double that of Marks and Spencer.
It is hard not to admire Boohoo in some ways, for theirs has been a stellar rise, fuelled by supreme agility and total commitment to engaging with their customers. They understand the power of social media better than most and they know what their customers want. Fast, affordable, in the moment fashion.
And that agility is paying off, last month's Q1 trading statement showing a 45% increase in group revenue for the three months to May 31, remarkable given that this was when we were all in lockdown and not able to go out.
But what Boohoo did so expertly was to pivot from the Saturday night out Instagrammable outfit, to the sofa gear. And they did this with lightening speed.
Fast Fashion Comes At A Price
And of course, they rely on their customers not quite bothering to trouble their collective conscience with where and especially how, their new clothes are manufactured. Let's face it, how many of us take the trouble to check the label to see where our clothes have been made and find out about the working conditions before we purchase? Thought not.
Because affordability and speed to market are key, and in any case, what could possibly be wrong with buying British? Well, it now appears the answer is, plenty.
According to a Sunday Times undercover reporter, the same factory supplying the Nasty Gal brand, which paid their workers £3.50 an hour (minimum wage in the U.K. is £8.72 per hour for those over the age of 25) was also still operating during the coronavirus lockdown in Leicester last week.
And it seems that this has cut through. Only last week, the home secretary, Priti Patel, asked the National Crime Agency (NCA) to investigate claims of modern slavery in Leicester's clothing factories, describing the allegations as "truly appalling". Adding that, "I will not tolerate sick criminals forcing innocent people into slave labor and a life of exploitation.
And Bohoo will go down because the very millennials who buy their products are now trying to organise a boycott of them.
Do you think that Love Island will want to be associated with modern day slavery.
You appear to not be taking this crisis seriously and think that some powder puff PR statement will make everythig ok.
It won't.
Long term Bohoo will be fine but all this horrendous negative publicity will be terrible for the share price on Monday. Don't let the rampers tell you any different.
No, none of us can affect Bohoo but the entire mainstream media globally can decimate it. Just look at Facebook it lost nearly 20% with the BLM boycott between June 23rd and June 26th - this is approximately $13 billion or more than twice BooHoo's market cap. Of course it will recover but those who took advantage of it would have made a fortune and massively increased their holdings.
It is not people here who are going to cause the share price crash on Monday but peopleneed to be aware of what is coming.
Peoplepower1 - no you are really desperate. It does not matter that the headlines are sensationalist.
It matters that the headlines exist.
It matters that the millennials who are BooHoo's customers are trying to organise boycotts of the brand on Twitter.
It matters that the global media are pushing a narrative that is incredibly damaging to BooHoo's reputation on the front page of every major news website in the UK and also globally.
You accused me earlier of trying to make the share price go down. Of course I am no. The share price WILL go down as the entire news industry is accusing BooHoo of modern day slavery.
Are the BBC trying to deramp Bohoo? Are the Daily Mail, The Times, The Guardian, The Independent, Forbes?
Open your eyes. Long term the company will be fine but Monday is going to be a blood-bath.
And here is what Twitter (which represents BooHoo's core demographic) has to say:
https://mobile.twitter.com/search?q=%23boohoo&src=typed_query&f=live
A bit like shutting the stable door after the horse has bolted. Why did they not do this already?
Go too google, type in "Bohoo" and then go to news. https://www.google.com/search?q=boohoo&rlz=1C1CHBF_en-GBGB781GB781&source=lnms&tbm=nws&sa=X&ved=2ahUKEwja4sG9nrbqAhVUJTQIHVNFDR8Q_AUoAnoECBIQBA&biw=1920&bih=969
The following headines come up:
The Independent: "Boohoo ‘facing modern slavery investigation’ after report finds Leicester workers paid as little as £3.50 an hour"
The Guardian: "Boohoo booms as Leicester garment factories are linked to lockdown"
The Times: "Boohoo on the rack over cheap labour"
Business of Fashion:: "Boohoo to Investigate Supply Chain Practices After Health Report"
Forbes: "With Allegations Of Slavery And Unsafe Working Conditions, Is Boohoo The Unacceptable Face Of Fast Fashion?"
The Telegraph: ""Boohoo hits back at claims it helped spread virus in Leicester"
The Times: "Boohoo: fashion giant faces ‘slavery’ investigation"
Daily Mail : "Leicester's cramped ragtrade workshops face 'slavery investigation' after workers supplying fashion giant Boohoo are found to be paid £3.50 an hour"
BBC: "https://www.bbc.co.uk/news/uk-england-leicestershire-53263733"
This is every major media group in the UK and Forbes internationally all absolutely slaughtering Bohoo to an audiend of hundreds of millions of people and yet Peoplepower1 is trying to fool genuine investors that the share price will not fall on Monday .
Honest investors should be very wary of rampers and share cultists who would tell you that the price will not go down. It WILL DEFINITELY go down on Monday.
Hitchesn is occasionally interesting. Mostly not though.
Because I wanted to see if I should listen to anything you say or if you are just another one of these rubbish traders who make a couple of hundred quid a day and think they are Warren Buffet
This company is not just dying it is already dead. It only still exists to pay the directors. They have failed at everything they have tried to do.
Eventually this will become a shell. It is just a matter of time.
£95 million is not a big market cap for any company with global potential these days. Just saying...
kammi - how much money did you make in the last week?
It would be great if BA could use this opportunity to make big structural reforms without union strike action.
Then again, if they are going to strike they may as well do it now lol!