RE: EBITDA is utter nonsense – Warren Buffet25 Jun 2023 13:35
More importantly Boohoo's profit was rising every year from 2015 to 2020.
Along came Shein who knocked Boohoo's profit.
Nobody took Shein seriously, including myself, until it was too late.
Shein were able to undercut Boohoo's prices because they don't pay import duties to the USA. As I said, this is about to change.
Share price rise because profits rise and not because revenue rises.
It's all about profit.
REVB aren't making a profit. Revenue may be rising. It's not revenue that counts, it's profit and profit rises make share price rises.
Warpaint's share price has risen considerably because their profits have risen every year. Warpaint's net profit is 10% of revenue.
Their revenue is much lower than REVB. That doesn't matter. It's profit that matters and as Warpaint's revenue rises then it's profits will rise too.
People think it's revenue that matters. It isn't. It's profit that matters particularly for beauty product businesses.
Warpaint is a beauty products business too. Its products are more expensive than REVB's products and yet Warpaint is making 10% net profit on its revenue.