Member Info for Peoplepower1

Why it's so important to look at net revenue and not gross revenue -

Gross revenue doesn't include returns.

Not for me. Simply more obfuscation by you. Let's distract from Boohoo.

More obfuscation. Please see my link below about Temu's app being available from 25 March 2023 in UK.

Gross Revenue doesn't include returns Please read my post below on Boohoo's returns.

Young people, men and women, are buying clothes from Boohoo using Klaran, a buy now, pay later facility.

They are doing this, so they don't pay anything for the clothes.

They do this by wearing the clothes out, keeping the labels on them and then returning them.

They don't pay anything at all to do this because they return the worn items before having to pay Klarna for the items.

Boohoo have returns of something like 30%.

One in three items are returned to Boohoo.

Net revenue is much more important than gross revenu because net revenue includes returns which are particularly significant for Boohoo.

Again, you love your obfuscation.

The figure you quote was from 1h20 to Interim Results on 28 September 2022.

Please provide the link and all the information and stop the obfuscation to suit your own positive spin on Boohoo.

And yet even more obfuscation.

From Boohoo's Interim Results on 28 September 2022:-

UK revenues declined 4%, softening through the second quarter as inflationary pressures increased and consumer demand appears to have been impacted by cost of living pressures.

More obfuscation

https://technode.com/2023/03/14/shopping-app-temu-to-expand-into-uk-on-mar-25/

You borrow money when you need it.

Businesses borrow money when they need it.

Simple.

Why would a business draw down £325m revolving credit facility if they didn't need it to run the business?

The problem is Boohoo have huge competition in the USA and UK from Shein and Temu, two Chinese online fast fashion websites who are undercutting Boohoo's prices.

According to L%'s post, from the £325m revolving credit facility, there was £314.5m cash balance so Boohoo had already spent £11,5m of the £325m revolving credit facility.

Why would a business draw down £325m revolving credit facility of they didn't need it to run the business?

Warren Buffett doesn't like the use of EBITDA by businesses because it's a way of hiding what's really going on in the business.

Discretionary Capex is what you want for the business and non-discretionary capex is what you need for the business.

More obfuscation.

There's discretionary and non-discretionary capex.

Boohoo needed the £300m revolving credit facility to keep running the business.

For me, t4g obfuscates everything.

He does this to baffle and bamboozle people on here, to make himself sound like an expert.

Free Cash Flow after tax for Boohoo's six months interim results at 28 September 2022 was a minus £2.7m

Available cash generated for six months to 28 September 2022 by Boohoo was a minus £2.7m

Operating Cash Flow(OCF) doesn’t take into account capital expenditures (CapEx) or purchases of Property, Plant and Equipment (PP&E).

By deducting CapEx from OCF you arrive at Free Cash Flow, which is a better assessment of available cash generated for the period.

Of course, the £300m revolving credit facility is needed to run the business otherwise Boohoo wouldn't have drawn it all down.

Use you brain instead of your emotions.

Jo Ingham, the Buying Director, was seen as a significant employee when recruited by Boohoo. She's leaving too.

Neil Catto was a great CFO as far as I was concerned and saw Boohoo through their growth times.