Member Info for Peoplepower1

Too many on here still believe in the Boohoo of yesteryear when it no longer exists.

That's your choice.

I do my best to give what I believe will affect Boohoo's share price at present and probably for at least the next year.

Of course I could be wrong again so could you.

At 400p I didn't think the Leicester scandal would hit the Boohoo share price so hard. I didn't also think that Shein would become such huge competition for Boohoo. I didn't envisage the profit margin dropping so low. I had no idea a pandemic would take place.

Yes I was wrong at 400p because I believed in Boohoo.

Prefer to be neutral than having a loss.

Better neutral than a loss.

Think it through for yourself, do your own research.

Ignore people who rubbish others and don't come up with any proper thoughts on this.

Nobody knows what the profit margin will be for end of year results due early March 2022.

Christmas wasn't good, January and February won't be good despite what anyone says on here.

Freight costs still excessive, so you have to ask yourself do you think Boohoo will make the 6% to 7% profit margin forecast.

How many retailers will be after the air freight because of the problems with sea freight so expect air freight prices to remain high until sea freight is normalised.

For me, I don't see air and sea freight normalising for at least another year so this will hit Boohoo's profit margin to February 2023.

Again, do your own research.

To my mind, the only hope is to put on a short bet to hedge your losses by holding Boohoo shares.

I could be wrong so please do your own research.

It's not about revenue it's about Boohoo's profit margins.

When Boohoo share price was going up, the profit margin was over 10%. When the Boohoo share price was going down the profit margin had dropped to 9.5%, then 9%, now it's forecast at 6% to 7% and may well go lower hence why the share price is still going down.

If Boohoo come out with a profit margin of say 5% for end of year results due early March 2022, then the share price will go even lower.

It doesn't matter how much revenue Boohoo makes, it's all about Boohoo's profit margin.

The Boohoo label can't put up their prices because of huge competition from Shein and Shein prices are so low. This hits their profit margin along with all the excessive costs for air and sea freight.

And the next paragraph reads

"Sea and air freight will eventually come back into balance, but for now the pandemic’s consequences will be measured in shipping costs, prices, inflation and in delays."

How many retailers are going to be chasing air freight because of the problems with sea freight? This will continue to keep prices high.

https://brc.org.uk/news/the-retailer/pandemic-supply-chain-problems-won-t-be-easily-fixed-and-may-continue/

Please read in full to understand the supply chain problems properly.

The Boohoo label has too much competition now from Shein and too many others, hence why growth is going down in the USA, Europe and Rest of World.

It's very telling that no UK Institutions are buying Boohoo shares. Presumably they don't see any growth for Boohoo.

The supply chain problems are expected to last into 2023. This has meant that Boohoo have had to allocate an extra £65m for this financial year towards these inflated costs. £65m may not be enough and it may cost Boohoo more.

Then there's the USA Court case which has yet to be finally settled.

Too many on here think Boohoo is still the Boohoo of yesteryear when it's clearly not.

Wise advice is never put money into shares that you're going to need.

"medium-term margin guidance" is how long Some say 1 to 3 years for medium term. Others say two to five years for medium term. It sounds good, medium term guidance when you read it quickly. How long is it? This is CEO speak to make it sound good.

With the supply chain inflated costs persisting into 2023, there is no way Boohoo will achieve 10% margin anytime soon.

In addition, the Group's confidence in its medium-term margin guidance for 10% Adjusted EBITDA margin is unchanged, with financial performance this financial year containing costs that are pandemic-related which will unwind, as well as our investment into recently acquired brands and the Debenhams platform that will leverage as they scale. These costs consist of:

· inbound freight cost inflation of approximately £20 million;

· outbound freight cost inflation of approximately £45 million as a consequence of higher carriage rates compared to pre-pandemic levels; and

· start-up costs of approximately £10 million into the brands acquired earlier this year

This is from the profit warning trading update of 16 December 2021. These costs will go up because the supply chain problems are still persisting and expected to persist into 2023.

I was stating that it had already cost Boohoo a further £65m to date for increased costs for supply chain problems.

This won't have suddenly stopped so there will be more increased costs for supply chain problems for the rest of the financial year which will certainly hit end of year results due early March 2022.