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Must be monthly pay day time for Frasers
The Shorts in ASOS are going head to head with Big Mike, will he up his stake in Boo??
Can see Boo Employee Trust adding post results - been the norm at last open period - will the Kamani family add to Umars 3% he picked up before entering closed period ?
Who knows but it’s why Boo won’t drop and hold from this level post results, Umar let us know that,
Boss collection
https://www.instagram.com/stories/debenhamsmiddleeast/3201864578135763982/
Big Mike has a Chunk of Hugo ?
Interesting to see the brands being added weekly to Debenhams U.K. and Middle East
https://www.instagram.com/stories/debenhamsmiddleeast/3201717510183344784/
House range products is expanding as well
https://www.alshaya.com/en/
These guys are heavy weights in MENA region, if does appear Boo have helped with the website/ UI and Alshaya manage the back end
We have no idea what the revenue is and how Boo account for but 9 to 23 stores and 1.25M sq/ft in 2 years looks decent growth
Debenhams U.K. site is gradually adding the brands off the Middle East site
We know from the analyst call Debenhams is already profitable and is capex lite, the more you look at the range on offer and marketplace concept the more you can see what Boo’s strategy has been
Assume it is profitable it looks like it could be a smart business model
https://www.instagram.com/stories/debenhamsmiddleeast/3201717510183344784/
Hi Moody
Good spot
https://www.instagram.com/reel/Cxuib3TojSr/?igshid=MTc4MmM1YmI2Ng==
More brands being weekly to Debenhams
Https://www.instagram.com/p/CxtMvJOo88x/?igshid=MTc4MmM1YmI2Ng==
Looks that way SCB
23 stores now across MENA, lot of expertise to put this together - below
Massive store in Dubia, 125,000 sq/ft on fashion avenue
https://www.instagram.com/stories/debenhamsmiddleeast/3201158858646157761/
Https://www.instagram.com/reel/Cxs_kltIfue/?igshid=MTc4MmM1YmI2Ng==
Doesn’t appear to be a pop up but an anchored store ?
Whilst we wait for update
Debenhams beauty store … wonder if they roll these out across U.K. cities ?
https://www.instagram.com/reel/Cxssbk-oGpX/?igshid=MTc4MmM1YmI2Ng==
ASOS now sitting higher than the eve of its results this week, no new shorts opened either
Can Boo come in with FCF neutral and retain £79M?
Boo say they have £85M in for Capex - which would include £3M ish for Rev B balance USA distribution unit
Debt / legals maybe £8M
USA set up cost £25M - exceptional’s
£118M cash less £79M
Can they squeeze inventory for £40M with a £200M drop in revenue ? A £20M drop would match like for like to last years then can they squeeze more ?
Could get interesting if they stick to guidance
Let’s hope Boo can play Goldilocks
https://finance.yahoo.com/news/h-m-blames-warm-weather-060540332.html
Hi C/Man
Good chat
Just on returns they had 5M H2 2022/23 on a straight line basis of 46M items ordered, that’s the guidance they gave analysts at the most recent recorded meeting, guess we can only go with that ?
If the average item sold is £18 with 50% COGS, £9 cost
they had £45M of cash goods H2 swashing around but they nicked £10M on charging for returns
Sheffield automation can handle 150,000 of returns a day with minimum human handling
I am not sure returns will be as big a problem moving forward with Test/ Repeat ironing out manufacturing sizing anomalies
Agree not without risk here but IF the Bod put out a decent set of numbers next week confirming guidance we are set up well
Some crazy data to get our heads around
Next last year had similar revenue to ASOS around £4B
Next 40,000 staff and all the store costs
ASOS 4,000 staff no store cost
Next makes 10% profit margin but it’s on line sales are now 65% and growing, how long before Next is 80/20 on line to store revenue
Point being, being a pure fast fashion play may not be the answer, Debenhams mirroring Next web site offering, Beauty and quality brands like Karen Millen plus incorporating fast fashion looks like it could work ?
Boo have opened a Debenhams Beauty store in London and there are now 23 bricks @ mortar Debenhams stores incorporating 1,250,000 sq/ft in MENA region, maybe Boo evolves the Debenham beauty stores in the U.K. and utilise as a drop off for returns - as an example
Good chat DC
No arguments to your main point below - profit over revenue
I am not a holder of ASOS but looking in it appears to have specific issues it’s working through, £200M plus net debt and £600M of stock it needs to turn to cash
It appears the recent Test /Repeat range is selling well and at a good margin but the £600M of old stock is overhanging the balance sheet, pretty much all ASOS FCF + has to go to repay debt and manage the gap if any on the £600M, what happens if ASOS only sells £400M of the stock at cost ? Big risk in that £600M turning to cash
Boo doesn’t have the same issues, it just needs to complete the USA roll out
We will know next week if PLT, Karen Millen, Debenhams franchise and market place alongside their expanding Beauty division are performing or not ?
If Boo does deliver and confirms guidance to top of the range which was £79M EBITDA it may start to decouple from ASOS as it’s offering and range is diverging away.
Debenhams is the big one to watch for next week but all guess work as it stands today, we need to see the £numbers