Member Info for Peoplepower1

John Lyttle has brought in Andrew Reaney from Primark as Boohoo Group's Director of Responsible Sourcing and Group Product Operations.

Boohoo Group has no debt, £350m net cash, over £150m in working capital, £150m in assets, so plenty of cash and more to buy TopShop.

Online-only business model
Online is growing exponentially
Growing globally - USA, Europe, UK, Australia, sells to over 200 countries worldwide
Global fashion market worth £2,000bn, UK £71bn, USA £330bn, Europe £350bn, Rest of World £1,250bn
9 Brands covering age groups 16 to 40 and beyond
9 Brands covering different tastes, Boohoo, BoohooMan, Prettylittlething, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse
Each brand has its own management and design team to prevent overlapping
Each brand has its own website
Each brand is run like a standalone business
Fundamentals of the Boohoo group business are strong with increasing sales and increasing market share.
No debt, £350m net cash, over £150m in working capital, £150m in assets.
Total revenue and profit up every year for the last 5 years with forecasts suggesting even more this year, possibly 40% increase.
Boohoo's warehouses are able to support a business of up to £3bn revenue. So Boohoo are obviously expecting to get to £3bn revenue in the next couple of years.
Boohoo has been an amazing success since its 2014 flotation on London’s AIM market. Profits have trebled since 2017 and the company has delivered continued strong growth.
Good quality stocks like Boohoo tend to be resilient, cash-generating businesses that can compound investment returns over time
Grown revenue ten times since 2015
Makes more profit from its revenue than ASOS does because it doesn’t sell third party items
Boohoo Gross Margin 54%, ASOS gross margin 33%
Boohoo spent £116.8m on marketing campaigns in the year to 29 February 2020 - almost 10% of its total sales.
Buys failing brands out of administration - only buys the websites and logos of failing brands
Boohoo bought Nasty Gal's brand assets, website and logos, in 2017 for $20m (£15m) and turned it into revenue of £100m within 2 years. Nasty Gal was founded by US businesswoman Sophia Amoruso who is credited with making the term "girl boss" mainstream.
Great management team with knowledge, experience, skills needed to grow the business
Learns from mistakes and puts them right
Management will do everything possible and more to gain the support of the institutions
Adapts easily to whatever’s needed
Owns automated warehouse in Burnley
Tests and repeat items on a run of 10 or 100 to see how they sell before repeating the order
Up to date fashion from, for example, catwalk to online quickly and cheaply
Social media is key to its success - superb use of social media including TikTok, influencers and celebrities
Part of its success is down to targeting under-30s who prefer to take style tips from social media influencers and buy clothes on their phones.
The quickest a piece of clothing can go from design to sale is two weeks.
Founders of Boohoo Mahmud Kamani and Carol Kane brought in John Lyttle from Primark. John Lyttle grew Primark’s revenue to £7bn in 8 years.
John Lyttle brought in Andrew Reaney from Primark as Director of Res

Mudis - I think it was at last year's AGM that Boohoo were surprised at how quickly a £1,000 Karen Millen coat had sold out.

Flags - Boohoo sell to 200 countries worldwide including US so when pound goes down they gain from their overseas markets.

Frac - thanks for the link. It mentions IoT Nodes and Cap-xx under Table of Contents at 4 onwards. Here's some info on IoT Nodes:-

IoT Nodes – Sensing and Controlling. The most numerous type of device in the IoT can be referred to as the node. These are all the exciting devices that are providing sensor data, or devices that are being controlled from the cloud. This means things like door locks, security sensors, temperature sensors, and more.

Please note the most numerous type of device.

Please danl90 stop trying to push Ragtrade into a corner, it's not nice to read and it doesn't seem to do you any favours when you behave in such a way.

Each of you can contribute from your own knowledge, skills and experience. This is what we need on here from both of you.

For example, danl90, you've made me think about the data side and how this adds great value for Boohoo. Also, interesting to read about ASOS gross margin being 33% and not 48% because of how ASOS represent their figures.

You obviously know your stuff. Please, don't use this to try to belittle people who won't have the same knowledge, skills and experience as you. Instead, use it to educate all of us because that would be extremely helpful as Boohoo investors. Putting everything you write in easy to understand terms would help us greatly too.

Please allow us to enjoy contributions from both of you because they provide a different insight to Boohoo for which I'm certainly grateful.

May I also suggest, instead of asking Ragtrade questions about Boohoo's valuation, how about giving us your answers to all those same questions and allow Ragtrade to comment how and what he wishes.

I. for one, would be interested in your answers, danl90, to all the questions you keep asking Ragtrade to answer. Maybe you have answered them already and I've missed them. If so, I'd love to read them.

I look forward to reading more and more contributions from both of you on here.

I have read with interest both Ragtrade and danl90's comments about Boohoo on here.

For me, it seems you both have great information to offer.

Ragtrade knows his fashion, supply chain, etc., danl90 knows his figures, KPIs, etc..

Both are worth trying to understand. I am happy to see contributions from both of you because they are from different angles of the Boohoo business. You may not agree on certain stuff, however that's okay.

I can see both your points of view about Boohoo taking on Topshop/Topman's wholesale business and whether this is best or not for Boohoo.

You'll probably know this already that Mahmud Kamani and Carol Kane started out in the wholesale business providing the likes of Primark. They decided to cut out the wholesale and start selling direct online. Whether or not, they'd want to go back into wholesale is maybe another question to consider. I can see both of your views on the value of wholesale or not for Boohoo.

I'm guessing here that Ragtrade has bought Boohoo and ASOS because he's seen how well they're doing online being a supplier. He can see the growth. For danl90 I'm guessing again, he's buying because he can see the future growth revenue and gross margin of Boohoo.

danl90 is right about the gross margin. Boohoo makes more profit from its revenue than ASOS do because ASOS sell third party items. Boohoo is 54% and ASOS is 48%.

If I can say to you both that you're coming from different angles however both are worth trying to understand because together they gave us investors a well rounded picture of Boohoo and its future.

So I say to both of you keep up the good work by sharing your knowledge on here. It's not a competition about who knows what or who thinks what or why. It's about sharing what you know on here because it will help all of us investors greatly.

I hope all that makes some sense to both of you and I, for one, thank you both for your contributions.

https://www.net-a-porter.com/en-gb/porter/article-844911deeddee838/fashion/art-of-style/ss21-fashion-trends

https://www.pacermonitor.com/case/30067087/CAPXX,_Ltd_v_Maxwell_Technologies,_Inc

For me, what killed the High Street was the same shops in every town and city in the UK. It became boring.

The High Street needs to return to independent shops, independent cafes, independent restaurants and bars. It's the chain mentality that damaged the High Street so much.

JD_86 I'm still here and still holding my Boohoo shares and will be for many years to come.

I buy and hold for years and years, what I believe to be, great growth shares. I don't have the time nor the inclination to trade shares.

I remember Jambon too. I didn't know he sold his Boohoo shares to go into Koovs.

I researched Koovs. There are loads and loads of online fashion sites in India, plus people don't pay online. They pay cash on delivery which all added to the costs. Hence why Koovs failed in India.

This is why it's so important to read everything you can find about a share before investing in it. You can never do enough reading about any shares before investing in them and whilst holding them too.

Love that, Bablake - leave your investment to bed unless you can learn to love the red! Beats Warren Buffett's statements every day. Great one and thank you for sharing it.

Boohoo's commitment to an incremental £10m of investment demonstrates their resolve to enforce the highest standards of ethics, compliance and transparency for the benefit of all garment workers.

Onwards and upwards. Well done CAP-XX. Well done to all shareholders who kept the faith. Looking forward to future growth for CAP-XX. Looks like it's all falling into place for them and us.

Automated production lines at a time when supercapacitors are being used more and more. Going after the Ioxus money and fighting on with the Maxwell/Tesla patent infringement. I can't see CAP-XX moving the Ioxus court case to a New York district without there being a chance of retrieving the money owed.

If you feel like being nasty on here, then please don't do it. Instead take a break and go for a walk. You'll feel much happier for it.

Paul85uk - I research everything. I use google to do any research and read everything I can find.

maxdba - Why are my latest trades delayed?

Most on-exchange trades are published the instant they’re executed, and most off-exchange trades are reported to the exchange and published almost immediately.

But some types of trade (both on- and off-exchange) are allowed to be published with a delay (often depending on the size of the trade), so may not be announced until minutes, hours, or even days later. Similarly, corrections or cancellations for existing trades may not appear until hours or days later.

maxdba - Why does my share price change after market close?

The LSE market hours are 08:00 to 16:30. This doesn’t mean the trading stops though.

Stocks close for regular trading following the closing bell, if not before, but it’s common for trades to continue being executed. Many get matched as part of the closing auction, finishing with a final uncrossing trade. And off-exchange trading (parties buying and selling shares directly with each other) can happen at any time too.

All trades, executed inside or outside market hours, can also experience delayed publication, where they were executed earlier that day (or on previous days) but not announced officially until later. The same can be said for cancellations or corrections to earlier trades!

Activity in the order book will often take a while to wind down, as traders and market-makers amend or cancel their orders and quotes. This usually causes the best bid and best offer prices to move progressively further from each other, sometimes taking an hour or two to settle down. Occasionally, there are further changes during the night before activity starts winding up again 30–60 minutes before market open the next day.

For all these reasons, it’s perfectly normal for prices and other values to change while the market is closed, especially in heavily traded stocks.

maxdba - What do you think about after-hours trading i.e. trading when the underlying markets are closed?

You shouldn’t try to trade actively after hours. The only real reason of extended trading hours is to allow participants to exit in case of a market shock or a hard stop instead of being caught out when the market opens.

Thank you RazorsEdge, you are very kind as always.

Bol to you too.