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Boo CEO
‘Moving on to Debenhams, our digital marketplace. Our strategy is to add more partners, more brands and more products and through this, to grow our customer numbers. You can see in the table the rapid progress we have made in growing our customer base. The number of brands available for consumers and the impressive number of products available across fashion, beauty and home. Looking forward, we want to accelerate Debenhams, focusing on premiumization, turbocharging our marketplace and accelerating beauty.
This will allow us to capitalize on Debenham's huge brand awareness and significantly scale its capital-light stockless model, which at scale, can deliver superior margins.
Our partnership strategy is focused on working with partners that can extend our global reach through their direct-to-consumer platforms and help raise our brand's awareness in a manner that offers complementary and incremental revenues in a low-risk way. In turn, our wholesale partners get access to our fashion, our newness and our short lead time model. Our sales portal allows them to select from the same ranges that our teams are buying and benefit from the group's buying scale.
We have today a large wholesale footprint around the world with 5 key partners as outlined on this slide. Looking ahead, we are working on partnership opportunities across new regions to continue to expand this offering, elevating our brand's presence across existing and exciting new markets.
Our digital marketplace, Debenhams, expanding our wholesale partnerships and developing our global infrastructure network. We're extremely confident in our medium-term outlook as we continue to offer customers unrivaled choice, inclusive ranges and outstanding value, giving them even more reasons to shop with us.
So thank you, and we'll now open up the floor to questions’
Thanks West will check out
Gut feel Jeffries we’re on the money with the £300M revenue
2022/3 for Debenhams, they are close to the company, doubt they would fabricate?
Their Middle East partner has 2000 outlets with 7 full on Debenham stores across multiple countries
When we look at the products on the Debs store on line U.K. plus the Beauty side, it’s becoming a key brand for Boo
Karen Millen as a brand looks like it’s growing
PLT did almost $1B Globally last year and any of us tracking their USA marketing can see it’s gaining momentum
I could be wrong but it’s starting to look that Boo itself is in the same segment / place as Shein and the other key brands above are enjoying the marketing $$ as they are being developed in their own right
They will develop their own beauty brands with Rev B support and separately cross sell Rev B on line to its 18M
app users
I could be wrong but it kind of all makes sense as Boo move away from chasing revenue and focus on margin and as they say the heavy lifting Capex to put this all together is almost complete
Hi Wolf
Am liking how Boo are developing their key brands.
Debenhams Beauty
Debenhams Market Place
Debenhams Middle East Franchise
Karen Millen
PLT - USA
Will find their specific comments tomorrow about partnerships / distribution deals on the Conf call, tbh I didn’t pick up on it at the time but beginning to join the dots
Are Debenhams coming back to the U.K. high street via dedicated Beauty Stores ?
https://www.instagram.com/reel/CxYUnjyCSti/?igshid=MTc4MmM1YmI2Ng==
Impressive, building on the Brand
https://www.instagram.com/reel/Cxa4IWfIhHh/?igshid=MTc4MmM1YmI2Ng==
Hi T4G
I green boxed PP and his alter ego Pedro last week the poster offers nothing of note to the BB so I can’t see the posters drivel
Worth pointing out it was just few weeks ago the poster was advising investors on this BB to sell Boo at 32p and buy RevB at 34p, scary stuff.
It appears they may have mental health issues and I think it’s best not to engage, let them write what they want, none of us move the share price, ideally the rest of us share data, let PP
‘ talk ‘ to himself
Hex/ Wolf can challenge stuff in a healthy / balanced way
If you contact Jeffries you can buy their report
£300M 2022/23 was their figure
I posted the script of the BoD saying Debenhams in profit and a capital light business as a market place
7 bricks & mortar stores in the Middle East plus on line franchise
Got to do the research / pay for if need be
Jeffries forecasted Debenhams generating £250M to £300M revenue for Feb 2022 to Feb 2023 - private note to clients
Boo CEO told analysts in May that Debenhams is profitable as marketplace platform
Boo CFO. was a capex lite
Wonder what the revenue is for this accounts year ?
Debenhams is starting to look like an astute purchase by Boo
hopefully we get more information week after next ?
Different market to Next
USA side ramping up
https://instagram.com/stories/boohoomanofficial/3195421194982714708?utm_source=ig_story_item_share&igshid=MTc4MmM1YmI2Ng==
Posted earlier this week but worth revisiting after Warpaints results / guidance and the increased promotion of Rev B on the Boo platforms including Debenhams & via franchise partners Debenhams Middle East
Question
Caroline Gulliver (Analysts)
And my second question just relates to beauty. Just if you could give us some examples of how you're intending to accelerate beauty. I know you've had some wins, but just a few more examples would be good.
Answer
John Lyttle (Executives)
So if I take Debenhams to start, Debenhams now carries, I would say, 85% of the premium beauty brands. So obviously, Debenhams is making huge progress in terms of their beauty business. We're equally -- we're not very strong, I would say, in our core brands in boohoo, PrettyLittleThing, Karen Millen, Nasty Gal, as an example, and with big ambitions in terms of own buy and own brand in terms of development there with those brands.
And then obviously, we've kind of recently invested in Revolution Beauty, and that's obviously given us more insight into the beauty market and what potentially we can do with our internal brand. So quite a lot actually going on in the beauty space
Market cap £231M
Read across to Rev B and Boo owning 30%
Then look at War Paints commentary
Significant growth in all geographic areas: sales in the UK increased 28%, Europe by 56%, the US by 83% and the rest of the world by 53% in H1 2023, compared to H1 2022.
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W7 brand sales increased by 67% and Technic brand sales increased by 37% in H1 2023, compared to H1 2022
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A range of 158 Technic products have launched in an initial four Asda superstores on a trial basis ahead of Asda's cosmetic range review undertaken in Q4 2023
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Significant further expansion in the US with H-E-B stores, CVS BIRL stores, where initial sales have been ahead of expectations, as well as launching in Sallys and Nordstrom Rack
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Online sales continue to accelerate in the UK, EU, China and the US, increasing by 212% to £2.0 million in H1 2023, compared to H1 2022
Financial Highlights
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Strong growth in sales during the period across all geographic regions, to achieve a record first half, reflecting the focus on growing sales of the Group's branded products
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Group sales increased by 46% to £36.7 million in H1 2023 (H1 2022: £25.2 million)
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UK revenue increased by 28% to £13.3 million (H1 2022: £10.4 million)
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International revenue increased by 58% to £23.4 million (H1 2022: £14.8 million)
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Gross profit margin increased to 39.1% (H1 2022: 39.0%), due to successful management of continued supply side inflation
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Adjusted EBITDA of £7.9 million (H1 2022: £4.4 million)*
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Statutory profit from operations of £6.3 million (H1 2022: £3.5 million)
·
Cash of £7.1 million as at 30 June 2023 (30 June 2022: £4.3 million) and no debt
Notice Shein only employ 14 people in the U.K. and they are apparently in marketing
They would have to pay import tax on consignment supplies rather than as they do now, service direct from China and the individual parcel value falls below the tariff threshold
2/2
Question
Tony Shiret (Analysts)
And in terms of the 10.8% marketing spend, what would that figure look like for Debenhams?
Answer
John Lyttle (Executives)
We -- well, we don't break down our brands by marketing spend, but we have different spends depending on brand and depending on region in terms of this what I would say. So some of our more mature brands in the U.K. have got our lowest marketing spend as an example, and some of our newer brands have got higher percentages. And equally, if we go into the U.S. or go into Europe, the percentages tend to be a little bit higher. So clearly, we see the opportunity as well, I would say, in Debenhams, and we'll be making sure we get behind that opportunity.
Answer
Carol Kane (Executives)
Yes. Just to add on to John on the Debenhams question. We have actually already just launched TV campaign, which is our bigger, better, bolder campaign, which is -- it's about relaunching and actually telling the consumer that Debenhams is still here. It hasn't gone away. It is a pure play, is online. But we have done quite a lot in terms of inventory with our partners. We have just landed some of the big premium brands, which Shaun said earlier, which is really, really helping drive that positioning of Debenhams becoming more premium than I think it was when it was on the high street.
Certainly, if you looked at the store -- the online shop today, you will be able to see that it's actually getting a much more premium feel than the old Debenhams that we used to know. So there is quite a lot of marketing going on in the background. And I think when we get all our new partners on board, it's just -- that is going to turbo that growth.