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Boohoo is also desperately reducing inventory and slashing costs as it look to stem the flow of cash which is bleeding out of the business.

Boohoo have had to obtain a £325m revolving credit facility.

The similarities between ASOS and Boohoo.

AJ Bell Investment Director Russ Mould must be a troll too.

Read the post and links in full to find how this affects Boohoo too.

Read everything in full before simply reacting.

Then you won't make a complete ass of yourself.

Even A J Bell Investment Director Russ Mould stated returns were a costly part of the business.

So, maybe think, if returns are a costly part of the business for ASOS, how much more costlier are returns for Boohoo?

‘It’s easy to see why corporate vultures are circling’, said AJ Bell investment director Russ Mould. ‘Chief executive Ramos Calamonte is desperately reducing inventory and slashing costs as he looks to stem the flow of cash which is bleeding out of the business.’

‘The company failed to fix the roof while the sun was shining.

Online retail had a good thing going during the pandemic. People had lots of disposable income, there was nowhere else to buy clothes and the thought of braving a queue at the post office meant people were put off from making returns – which are such a costly part of doing business.

‘Now a lot of those factors have reversed, household budgets are tight, returns are easier to make and physical retail is now an option.

‘Management faces a real battle to get things back on track and an increasing number of observers are now betting against them.’

Boohoo is also desperately reducing inventory and slashing costs as it look to stem the flow of cash which is bleeding out of the business.

Boohoo have had to obtain a £325m revolving credit facility.

https://www.sharesmagazine.co.uk/news/shares/asos-shares-targeted-by-dark-destroyer-short-seller-shadowfall

More assumptions and obfuscation.

A return of used inventory equals lost revenue, more markdowns, higher payment processing fees, reduced profits, and smaller margins.

Additionally, a business will need access to more capital to fund replacement merchandise.

The Test and Repeat models can no longer work properly.

WHAT IS WARDROBING?

Fraudulent returns in the category of wardrobing, or wear and return, happen when consumers buy merchandise, use it briefly, and return it for a full refund.

gregpeck7 - now the young people have cottoned to to removing the tags skillully, keeping the tags safe, then putting them back on the garments before returning them.

WolfofWarks - I don't use Simply Wall Street nor the Red Tops as you call them for my investing.

Where do you think Quality newspapers and journalists get their decent reliable reputable sources?

The Sun and Mirror links were simply evidence of what young people were doing i.e. ordering clothes, wearing these clothes and returning them They were background information. It is the Sun and the Mirror who pick these stories up from the likes of posters on TikTok. So you can even learn something from the red tops too.

I use Stockopedia and Research Tree. I suggest you try both of them before condemning them or assuming you know all about them.

They cost £25 a month each and, for me, are well worth the money.

Research Tree gives you access to independent research on UK companies, like Boohoo.

I'm sure quality newspapers and journalists will use the likes of Stockopedia and Research Tree.

For example, I use a Stockbroker for my investments and my Stockbroker uses Stockopedia.

The problem with making assumptions means you make an ass out of yourself, so it's best never to make assumptions.

WolfofWArks - what are your decent reliable reputable sources?

Stockopedia is based on Company Refs. Stockopedia bought Company Refs. Company Refs was founded by Jim Slater.

I have no idea what you mean by red tops.

What are your decent reliable reputable sources?

Well then you need to be reading everything and learning from it. You still sound blinkered to me.

Gross revenue before returns up 4%, reflecting underlying growth and ongoing improvements in average order frequency and spend per customer, offset by weaker than anticipated consumer demand

Above is from the RNS for the Boohoo Interim Results on 28 September 2022.

Please try to check things before insisting you're right when you're so wrong and mislead people on here.

No, I'm not. It's a problem for all retail and if you'd bothered to read my posts you would have read this.

It's a huge problem for all retail. That doesn't mean it's okay. It's not okay.

Gross Sales and Gross Revenue do not include returns.

It states Gross Revenue before returns on the RNS for the Boohoo Interim Results on 28 September 2022.

I wish you would go and check things for yourself instead of always assuming you're right when too often you're wrong and mislead people on here.

Yes returns are a problem for all retail however that doesn't mean it's okay.

Provide the evidence for how Boohoo manages its returns.

WolfofWarks - you're a long term holder. You're blinkered and desperately looking for anything that Boohoo is okay.

Gross Margin is low at 48.7%. Gross Margin when Boohoo was growing was 56.4%

Inventory was huge and they've managed to reduce it somewhat.

US Distribution Centre is still not open.

Gross Revenue and Gross Sales don't include returns.

Read in full.

Returns are growing and growing as more and more people return worn clothes. This is costing billions and billions in the UK, USA, EU and the Rest of the World.

It's your money and not mine, so please read all the links and learn if you wish to make sure your money is invested well.

Stop being blinkered and read everything in full.

Between 20% and 40% of items are being returned.

I'm sure some time ago I read Boohoo's returns were something like 30%. That's one in three items returned and probably rising.

WofofWarks - you're another one who doesn't read everything and simply picks out one thing.

I've already posted this twice from the RNS for the Boohoo Interim Results on 28 September 2022:-

"As previously guided returns rates up significantly year on year, and ahead of pre-pandemic levels."

The point is not if Boohoo has a worse record than the rest for returns. The point is there are more and more people wearing clothes and returning them. Think about it milions and millions of returns. Do you honestly think these are all checked. Think about how much money it would cost to check them.

Hence why in the past you got things on social media about a dress being bought from Boohoo that had make up on it. This was because it had been returned and never checked.

And more recent articles however you use obfuscation to make it sound like they're all old links when they're not. The fact is more and more people are doing it and learning how to do it from these articles.

The problem here is long term holders who don't want to look at any negatives about Boohoo. This is a recipe fro disaster.

You tried to muddy the waters by not providing all the information about the market share growth for Boohoo in the UK. You don't even know if those figures include returns or not.

There you go again calling it net sales when it's net revenue and even Boohoo call it net revenue. Net revenue includes returns hence why it's so important to look at net revenue.

You both obfuscate by not using the term revenue which is what Boohoo uses.

Buffaloben - that's your problem. You're a vengeful human being. Then when it's pointed out you're off.

Billions are lost through returns of worn clothes.

WolfofWarks - returns aren't checked and repackaged because milions and millions of items are returned and it would be too costly to do this.

t4g says it's between 20% and 40% returns. that's at least one in five items returned and as much as one in 2.5 items returned.

This is a huge problem.

WolfofWarks - you're using blinkers if you think this is small potatoes.

Please read all the links in full and learn from them. Don't simply dismiss them. It's your money, not mine so it's your choice.