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The covenants are extremely important because Boohoo might not be able to comply with them so what happens then.

More analysts have said Boohoo won't make any profit until about 2026.

Yes, BofA thought Boohoo was going to go bust. BofA are now interested in Boohoo's cost cutting which will hopefully prevent Boohoo from going bust.

Sadly it looks like Boohoo won't make any profit until 2026.

Yes, Bank of America have upgraded Boohoo. This is because they thought Boohoo was going to go bust. It looks like Boohoo may make it however it's through cost cutting and not through profit.

Boohoo have drawn down the full £325m revolving credit facility and so they're paying interest on the £300m of this they have sitting in the bank paying little interest.

Plus, as far as I'm aware Boohoo haven't provided the covenants attached to the £325m revolving credit facility. We need to know what's in these covenants.

scb- Boohoo would have loved their sales growth to be 250% during the pandemic and 60% after the pandemic. Sadly, it wasn't anything like this.

Unfortunately Boohoo's sales growth peaked in FY2018

https://www.euronews.com/green/2022/04/05/welcome-to-the-dark-side-shein-is-the-biggest-rip-off-since-fast-fashion-was-born

EXPERT VIEWS

Liberum Capital is sticking with its negative stance on the stock: ‘While Boohoo are confident of achieving pre-pandemic growth and margin rates, we are less convinced.

The group has not gained much share of the UK online clothing market in the last three years and has clearly lost massive ground to Shein in the US and to online marketplaces in Rest of Europe,’ said the broker.

The real problem for Boohoo is that it is losing its sales growth in UK and USA to Shein.

Check the figures I posted. Boohoo's sales growth peaked in FY2018. Boohoo's sales growth should have been going up and up from FY2018 onwards. It hasn't and so its peak was FY2018.

So Shein are taking away Boohoo's sales growth in the UK as well as Boohoo's sales growth in the USA.

t4g - I posted the link to the Shein Uk similar web below. You must have missed it.

Maybe you need to notice that Shein's website visits are going up whilst Boohoo's are going down.

Check out the figures for yourself

FY2014

UK up 44%, rest of Europe up 36%, rest of the world including USA down 20%

Gross margins maintained at 63%

net cash of £53m

FY2015

UK up 33%, rest of Europe up 39%, rest of world including USA up 7%

One third of revenue is generated outside the UK

Gross margin 60.8%

net cash of £54.1m

FY2016

UK up 38%, rest of Europe up 25%, rest of world including USA up 56%

33% of revenue generated outside the UK

Gross margin 57.8%

cash of £58.3 million and no debt

FY2017

UK up 33%, rest of Europe up 73%, USA up 121%, rest of world up 64%

Gross margin 54.5%, down 330bps

net cash of £58.4m

FY2018

UK up 95%, rest of Europe up 50%, USA up 140%, rest of world up 40%

Gross margin 52.8%, down 180bps

net cash of £133.0 million (2017: £58.4 million), following £50 million share placing

FY2019

UK up 37%, rest of Europe up 67%, USA up 81%, rest of world up 30%

Gross margin up to 54.7%,

net cash of £190.7 million (2018: £133.0 million)

FY2020

UK up 39%, rest of Europe up 62%, USA up 61%, rest of world up 19%.
International revenue is now 45% of total, up from 43%

Gross margin 54.0%, down 70bps

net cash of £240.7 million (2019: £190.7 million).

FY2021

UK up 39%, rest of Europe up 30%, USA up 63%, Rest of World up 19%.
International revenue is now 46% of total, up from 45%

Gross margin 54.2%, up 20 bps

net cash of £276.0 million (2020: £240.6 million), £195.7 million capital raised.


FY2022

UK up 27%, rest of Europe down 10%, USA up 4%, rest of world down 9%

Gross Margin 52.5% down 170bps

International revenue is now 39% of total (2021: 46%)

net cash of £1.3 million (2021: £276.0 million; 2020: £240.6 million). New £325 million Revolving Credit Facility (RCF) agreed in March 2022

FY2023 - interim results for 6 months

UK down 4%, rest of Europe down 2%, USA down 29%, rest of world up 14%

Gross Margin 52.5%

net debt of £10.4m (1H 22: net cash of £98.4m, FY 22: net cash of £1.3 million)

https://www.similarweb.com/website/shein.com/#overview

https://www.similarweb.com/website/boohoo.com/#traffic

https://www.similarweb.com/website/shein.co.uk/#overview

Boohoo's sales growth has been going down from FY2019 compared to FY2014 to FY2018.

Boohoo's sales growth peaked in FY2018 and has been declining from there.

Sales Growth for Boohoo for FY2018 was UK up 95%, rest of Europe up 50%, USA up 140%, rest of world up 40%

Young people are only interested in price.

Shein's prices are lower than Boohoo's prices.

Shein's algorithms seem to be well ahead of Boohoo in working out what's fashionable, copying it and selling it cheap.

Boohoo will continue to lose out on sales growth to Shein, that's the bottom line.

t4g - the Boohoo sales revenue in USA from 1 March 2021 to 28 February 2022 should have been at least a billion. Instead it was 451m up from 435m for FY2021 which ran from 1 March 2020 to 28 February 2021. An increase of 18m.

t4g - there you go again. You're not looking at the geographical sales of Boohoo from FY2014 to FY 2018 compared to FY2019 onwards. Geographical sales growth is in declined from FY 2019 onwards compared to FY2014 to FY2018.

The geographical sales growth from FY2019 onwards should have been much more. Sales growth is declining. 18m sales growth in USA fro 1 March 2021 to 28 February 2022 is nothing when it should have at least doubled.

scb - USA market sales have been declining in growth since FY2019 compared to FY2014 to FY2018. This is because Shein is taking more and more USA market sales.

scb - an increase of only 18m in USA in 2022 compared to 2021. 18m is bugger all increase in USA. Can't you see Boohoo's market sales are declining.

t4g - again you're not looking at the comparison of market sales from FY2014 to FY2018 compared to FY2019 onwards. If there wasn't the competition from Shein, then Boohoo's total revenue would be much more than £2bn.

Boohoo's sales revenue has slowed significantly because of Shein.

Pmoran1969 - I remember being on the CINE board warning people about CINE's debt. You didn't want to read that then. Now look where CINE share price is now.

Maybe it's time you considered what I'm saying about Boohoo instead of dismissing me.

Boohoo could easily have been the 100 bagger had Shein not come along.

Now it's Shein whose valuation is being put at £100bn. If this was Boohoo then you'd be looking at a Boohoo share price of nearly £100.

I dismissed Shein as competition for Boohoo too. Not any more.