Member Info for Peoplepower1

Stop putting your head in the sand when it comes to Shein.

Too many of us have already done exactly that and learnt the hard way.

Ragtrade - one factory in Leicester won't overcome Shein.

Shein can do test and repeat in 10 days. It takes Boohoo three weeks.

Shabz83 - I think Shein will continue to take market share from Boohoo and ASOS.

Shein is a chinese company owned by a Chinese billionaire who gets all their items made in China. The owner is supposed to be superb when it comes to software and how to use it to its best effects.

Shein already have a warehouse in the USA and are streets ahead of Boohoo at this.

It's not turnover that matters, it's profitability. You can have huge turnover and make no profits or even losses. This is the problem with Boohoo and ASOS now, they are no longer profitable and may never be profitable again. Who knows?

Ragtrade - fast fashion has reached its top. I was answering unhooked's poster.

Shein won't float if they're going to be too many problems with it. I don't think the family has the same commitment to Boohoo as it did when it was increasing profits every year hence why Umar has left Prettylittlething.

I think the family would probably prefer to take it private on the cheap hence why no-one from the inside is buying Boohoo shares.

Shabz - you're assuming they can adjust. The problem is they can't undercut Shein's prices. Shein does exactly the same with influencers/celebrities, pop up shops, etc.

Shein's software is much more advanced than Boohoo's software so they're ahead of the game with this. Plus Shein can do test and repeat much quicker than Boohoo.

Pjf - 37 million shares traded on Wednesday 10 May 2023 with ASOS' update.

Soutcoastbather - you're so desperate for the least little thing.

For me, investing is all about admitting your mistakes, learning from those mistakes and applying the learning to see if it works or not.

If it doesn't work, then you have to look at what went wrong and apply it.

Everyone makes mistakes in investing.

Personally, I prefer the people who have made mistakes, explain those mistakes, what they've done to correct them and if it has worked or not.

I learn loads from these people and much more than I could ever learn from those who get it right.

Shabz83 - the point is Shein is able to undercut the prices of everyone else. They will continue to take market share away from Boohoo and ASOS too.

JustJames - each to their own.

I don't know Paul Scott personally, however, I like how he is able to make things easily understood.

I like he learns from his mistakes and most importantly he admits them.

Unhooked - may well be the point. Fast fashion has reached its top and is now downwards.

Everything has its time and fast fashion may have had it from hereon in.

JustJames - maybe you need to take your own advice and dig deeper.

JustJames - you're assuming I don't. I do I subscribe to Research Tree and to the Financial Times.

I like Paul Scott because of his honesty. He admits his mistakes, where he's gone wrong and learns from his mistakes. For me, this is what investing is all about.

You must take the huge threat of Shein seriously in the UK and USA.

Overall the gross margin for Boohoo is 50% and is expected to remain at 50% for the next coup of years at least. Online fashion companies need a gross margin of at leat 55% to make a decent profit.

Ragtrade - you're forgetting that Shein is a huge threat to Boohoo and ASOS. They are no longer the growth companies they were.

Take no notice of southcoastbather. He bought loads of Boohoo shares at about 200p and is desperate to get the price back to 200p.

Justjames - are you a subscriber to Stockopedia? If you are then you would be able to read all this. I'm guessing you're not. I am a subscriber to Stockopedia.

You have to understand Boohoo was a great company with increasing profit every year. No-one took the threat of Shein seriously, including me. Paul Scott sold out when he realised that Shein was a huge threat to Boohoo.

The reason the share price is going up is simply sentiment and nothing else. Like Hexam said in a post below.

JustJames - Paul Scott was a Finance Director for a fashion company so he knows his stuff. He openly admits he got it wrong with Boohoo with his second investment into Boohoo because he didn't take the threat of Shein seriously. However he made loads of money on his first investment into Boohoo when he sold out at 170p.

Paul Scott writes for the Small Cap Value Report for Stockopedia.

Scb - ebitda is not real profit hence why companies use it to make their business look good.