Boohoo - The Amazon For Clothes28 Apr 2020 14:34
The fashion market in the UK is worth £71bn, Europe is £330bn, USA is £350bn.
I don't have any figures for rest of the world so let's just say it's £250bn. Globally that would mean the fashion market is worth £1,000bn.
Boohoo Group achieved £100m revenue for Nasty Gal in 2 years. Boohoo Group achieved £600m revenue from £100m in 5 years for only the boohoo brand itself. Boohoo Group has six brands, Boohoo, Pretty Little Thing, Nasty Gal, Miss Pap, Karen Millen and Coast. Boohoo Group could buy Oasis and Warehouse which would give them 8 brands. Boohoo Group have no debt and £240m in cash.
The total revenue for boohoo group for end of year results 2019 was £1.2bn. Boohoo Group could achieve £6bn revenue in 5 years with 8 brands. That's just over half a percent of the global fashion market. Boohoo Group have been excellent at grabbing fashion market share. There's loads more for Boohoo Group to go after and get.
Boohoo Group use the test and repeat model. If it sells on test then repeat it. If it doesn't, then don't repeat. Boohoo Group sell their own clothes, no third parties.
Five times revenue in 5 years would make the Boohoo Group share price worth £17.50.