Member Info for Peoplepower1

Nobody will buy ASOS nor Boohoo.

Shein is taking huge market share from both of them.

Mike Ashley might buy ASOS if he gets it cheap enough.

However, the reason these people buy huge chunks of shares in the likes of ASOS is because it gives them access to much more data.

They learn from all this and apply it to their own businesses.

T4g - stop it with your marketing consultancy stuff. You can't see the wood for the trees because you allow your marketing consultancy to run you.

Covid didn't help Boohoo however, the biggest threat to Boohoo's profitability now and in the future is Shein.

Shein will continue to grow and Boohoo will continue to lose market share to Shein.

Have you gone through Boohoo accounts with a fine tooth comb?

It's time you did.

Exactly Daytradenovide - a business makes their money from profit.

Revenue is no good to a business without profit.

Scb - it's so easy to dismiss Shein. More fool you scb for doing it.

Take a look at their website here:-

https://www.shein.co.uk

Now you can see what Boohoo is up against.

Boohoo can't undercut Shein's prices and so Boohoo are f**ked.

Well said Daytradenovice.

Scb - it's not about revenue, it's about profit, profit, profit.

Boohoo's profit has been decimated by the likes of Shein.

T4g - you consider ASOS' profit to be substantial. It's not.

So do your homework and go through Boohoo's accounts from 2015 onwards then you'll see why Boohoo needs a 55% gross margin to make a decent profit.

Decent profit.

Decent profit.

Daytradenovice - exactly people think they're getting a bargain because Boohoo was once £4 and is now 40p.

Boohoo is 40p because it is no longer profitable and may not be profitable again until at least 2026.

Go through Boohoo's accounts with a fine tooth comb and see this for yourself.

Shein can undercut Boohoo's prices and has taken all growth away from Boohoo.

Look at the Shein website for yourself.

Would you buy a business without going through the accounts diligently. The same applies to investing and holding shares.

5085 - that's 3 years ago. Boohoo is no longer a growth company. Boohoo's profitability has been decimated.

Shein is a huge threat to Boohoo.

People are rushing in to buy Boohoo shares thinking it will go back to where it was.

I believe it won't.

People think I'm going to make money and never think I'm going to lose money.

It's so important to consider both sides before investing.

Fear, greed and hope are the worst reasons for investing and holding shares.

Always do your own research.

If Boohoo want to make savings, then why draw down in full a £325m revolving credit facility (rcf) as an unsecured loan in 2022 when Boohoo has to pay interest on this £325m on an unsecured basis and not secured.

Brilliant Hexam.

T4g - exactly ASOS has never had a gross margin of 55% hence why the price has gone down so much because ASOS can't make a decent profit.

Do some real analysis and look at Boohoo's annual reports from 2015 onwards to find out that Boohoo need a 55% gross margin to make a decent profit. And again a decent profit.

Absolutely Hexam.

There's none so blind than those who cannot see.

Boohoo is not debt free. It has drawn down in full a £325m revolving credit facility (rcf) in 2022. We don't know who is the lender and we don't know the covenants attached to this rcf

Boohoo has drawn down this rcf of £325m from 2022 to 2026 as an unsecured loan which is unusual because they will be paying more interest for an unsecured loan than for a secured loan.

Well said Hexam.

T4g - you need to do more analysis on Boohoo.

Check the annual accounts from 2015 onwards where you'll find Boohoo making a gross margin of 56%. This gave them a decent profit.

From 56% Boohoo's gross margin has gone down which means Boohoo was making less and less profit from its revenue.

Okehurst1 - people on here need to know both sides.

What could go wrong as well as what could go right?

Okehurst1 - savings aren't going to make you a real profit.

The fact Boohoo have to make savings shows how difficult are their problems.

As I've said before, Boohoo needs a gross margin of 55% to make a decent profit.

Its gross margin at present is about 50%

The stock inventory reduction saving Boohoo £100m cant't be repeated again.

It's a one off.

For me, the £100m stock inventory reduction contributed to the £5.6m net cash.