Member Info for Pmoran1969

That is interesting, setting up a bit of competition/pressure for JL or do they think that Debenhams is a different beast and will justify standing alone alongside the current bau boohoo brands? Is there potential for boohoo to build up and spin off Debenhams as a separate entity at some point in the future? One things for sure despite the current share price being somewhat in the doldrums the board are clearly not looking to slow down their growth plans and this Finley fella obviously doesn’t think he is boarding a sinking ship or he wouldn’t have accepted the role.

I’m sure this news will do little to placate the impatient amongst us and I’m equally sure the neg-heads will find something in it that proves boohoo shares will be trading in the 30-40p range by a week next Tuesday but as one who is still supping from a half full glass despite being underwater regards share price I view it as a positive.

Is it easier to sell a card or a pair of shoes or a protein shake or some beauty product online than a sparkly dress or a pair of jeans? The actual marketing and fulfilment of the products might be different but essentially knocking out the product to the customer is probably very similar in terms of its ease or difficulty.

However the returns side of things differs somewhat in my opinion. If I see a photo of a card and a description giving accurate dimensions I already know what I will get when it is delivered. Same goes for a protein shake or a beauty product. Sure a protein shake is a bit more subjective than a card and I might try once and never buy again or return a product because it isn’t what I was expecting it to be but once I’ve found a brand all future purchases I can expect to be as described and therefore not likely to return.

A pair of shoes are easier to manufacture to a standard recognisable size than a sparkly dress or a pair of jeans but anyone who has ever purchased shoes will know that sometimes it’s the size up or down from what you thought that fits you perfectly. If you sell shoes on line you can expect to ship two or 3 pairs of the same shoe to a customer and have the ones that don’t fit returned at least until they have purchased enough product to know and trust your sizes. That said processing of shoe returns is considerably easier than processing of clothing returns. Check the product sizes match (a lot of people try to bag different sizes shoes to match their having one foot a half size bigger than the other!), check they haven’t been worn outside, repack and shove back into stock.

Clothing needs to be more thoroughly checked, sometimes pressed, always refolded and repacked properly (which takes longer than repacking shoes) and then put back into stock for resale. In some cases it’s just easier and more economical to dispose of a returned garment through an alternative source rather than put back into stock.

So returns are certainly an issue for online or multi channel businesses and one has to be good at processing returns and forecasting future returns (analysis of wrong size or pore quality reasons for returns need to be acted upon to prevent future returns of same or similar items) but the rate of return and the ease of processing will be different for different products and the likes of card factory or certain hug group products will not experience the same level of returns as say shoes who in turn will experience an easier process than clothing.

Is it easier to sell a card or a pair of shoes or protein

I’d love to take credit for this but someone on another board made me aware of it. If you click on the link it will take you to the Financial Times page that tells you you have to log in. Copy the title of the article and paste that into your internet browser search bar at the top of the page (paste and search or paste and hit enter). That should provide you with a number of searches one of which will be the ft and the article and when you click on that link it opens up the article without needing to go through the paywall.

Hope that helps.

Maxage I am not bothered in the slightest whether you can spell or can construct a sentence that is grammatically correct. I do however stand by the comment that if you were able to do both and demonstrate that is your posts then your comments concerning whether posters are able to understand a financial statement would have more credibility.

Maxage I only needed to read your post stating ‘another poster who can’t read a financial statement to save there life’. Do you actually know what is wrong with that statement and how my comment was relevant to your post?

Manage when you know the difference between their and there you might carry a bit more credibility when you want to call into question whether posters are able to read and comprehend a financial statement!

Bottomberp. That’s a tough one for anyone to answer without it sounding like giving advice which I would certainly be reluctant to do. Don’t mind risking my own readies but would hate to be responsible for someone else’s!

Ultimately it wouldn’t be unreasonable to think that forced closure of stores wouldn’t happen again in our lifetime, that debt will be repaid at a suitable rate, that the online proposition will be developed and that any issues relating to supply chain or other pandemic related/caused costs will disappear. Likewise it would be reasonable to assume that regardless of inflation or reduction in consumer disposable income card will manage the issue through a combination of cost savings elsewhere or appropriate price increases. And of course there is the issue of how long before a dividend appears and how progressive will it be?

If you hold the view that the management are adequate and the issues above are workable it’s just a question of time. How long before issues disappear or the bod are able to mitigate and how long before the share price responds positively and of course how long before the share holders are rewarded by way of a dividend. Then it’s a question of how long can you have your funds tied up if you did average down and are you adequately diversified so that if card should stumble say due to inflation or interest rates rising more than expected you have other shares that might benefit and mitigate while you await card so getting to where you want it to be?

Averaging down (or up) is a strategy I favour when I personally believe in a company in which I am invested but equally I have also be known to just do nothing and hold a share in the bottom drawer when I believe in it long term but am in two minds or simply can’t answer the type of questions outlined above so am not prepared to crystallise a loss but am adverse to risking more or think there are better options out there.

Not sure if that two pennies helps in anyway!

Rag - I live just outside Harborough and noticed the store shortly after it opened. I haven’t been in yet because mainly because they won’t let me play golf in a pair of 1880 legacy brogues and I just know that I’ll walk out with a pair and then be waiting for a wedding or a funeral in order to wear them!! I hung up the work suits a few years ago and since then it’s been predominantly walking boots, Birkenstock’s, golf shoes and Adidas sambas on my feet. One day I’m sure I’ll get too old for trainers or be brave enough to try and to carry off the brown brogues with jeans look but until then in the interests of not upsetting the missus I’m staying out of there! Do you have cause to deal with Joules? They have recently completed and moved into their new head office, it looks impressive from the outside compared to the old one.

Oh yeah and I believe solvair who used to produce dm’s under license manufacture u der their own brand over here too as well as for third parties. They make a good DM equivalent but even though they are priced extortionately to what they used to be you can’t beat a good pair of DM’s

dr martens still makes some of their range in the U.K. and solvair who used to make dm’s under license still make over here under their own brand as well as for 3rd parties too. Loakes do something similar to dm’s in that they make certain stuff over here but their mid range shoe is designed here but fabricated (albeit using the same processes and materials) in their factory in India. I haven’t had to get suited and booted for work for a few years but my feet used to love a pair or properly manufactured English shoes when I did.

Kallu so if the cost of metal goes up 14% but the cost of a new car only goes up by 4%, or the cost of bricks goes up by 14% but the cost of houses only go up by 4%, or the cost of cotton goes up by 14% but the cost of a blouse on,y goes up by 4% the corresponding manufacturer has to absorb a 10% loss on the cost of the goods sold?

Is that how it works? Please educate us with your knowledge o great one because none of us on here have a clue about such complex matters.

Wolfofwarks kallu invested in abf earlier this year (spring/summertime) and paid circa £22 a share. He doesn’t care about share price though so the paper loss he is sitting on is of no consequence to him !

I have a keen interest in NFT or rather I did when it was the hydroponic method I use to grow lettuce and herbs in my greenhouse. I have an interest in art, particularly the impressionists and have a replica copy of monets Houses of Parliament at sunset hand painted in oils hanging in my living room. My Barbour jacket is real, waterproof and warm and is essential kit for walking the dog at this time of year and if I am going to slice a golf ball into the trees and 3 putt several times in a round you can bet your life I want to do it in person and I want to have a real pint with real people afterwards.

That said I do have some appreciation as to how block chain tech might offer more than just wild speculation on the latest meme crypto currency or a method of paying for lsd on the dark web. I doubt that the average boohoo customer will be wanting to part with actual cash to be seen wearing the latest boohoo man hoody on the metaverse any more than the average plt customer will be buying a virtual Louis Vuitton hand bag but if the young fashionistas are likely to be into it then it makes sense for boohoo to be into it too.

Can I see the day when some boohoo brands will include a collection that provides a virtual version of an item provided when you order the real thing? Can I see a time when people will converse in virtual group chats with their animated self wearing the clothes they are going out in that evening asking their friends if it’s suitable or making sure there are to be no awkward clashes of the same dress or top being worn in the group? Not the people I go out with no but for some of our brands and their customers? Yes why not.

My own view is that the share price was held back somewhat because of this old chestnut and despite the work the company has done to improve the market was slow to respond because they want to see evidence that the changes are sustainable. For me the likes of T Rowe and Norges are what one ,ought term early adopters and have been prepared to invest as they see the positive changes the company has made.

So the share price being somewhat stagnant in the £3.50+ range and unable to push onward regardless of growth projections and new additions such as Debenhams etc I do subscribe to the Idea of ESG concerns holding us back. However the decline from £3odd to where we are today I see as a whole different bunch of issues including the increased cost of transportation, labour, raw materials etc inflation fears and uncertainty regarding the effects of the pandemic and the ultimate effect this might have on customer spending power or habits. There’s no denying the reopening of the high street will be a concern for some until we actually see the hard facts about whether it has slowed down online. Throw in the rise of shein or what next will do next or a Yankee court case or even which beauty brands will or won’t let us stock their wares and perhaps there’s enough unknowns to make some investors want to jump out and pursue easier targets for the time being.

However for the times to simply suggest the current share price woes are a hangover of the companies ESG credentials is either lazy journalism or evidence that the times (and probably other usual suspects from the press) still have it in for boohoo. I suspect the latter.

Concerns about Boohoo’s environmental, social and governance credentials are proving difficult to shake off. No matter that the online fashion retailer has been striving to repair its reputation since it was reported last year that workers in Leicester were being paid below the minimum wage and were operating in unsafe conditions during the pandemic — it’s clear that Boohoo still has work to do when it comes to restoring its reputation.

Trimming its target price on the stock from 415p to 395p, Barclays argued yesterday that despite “significant progress” by the company, Boohoo’s stock continued to trade “within an ESG discount to this day”. Julien Roch, an analyst at Barclays, said that “one factor to be aware of from a governance perspective is that the co-founder Mahmud Kamani and his family own around 20 per cent of the shares”. Kamani is eligible for bonuses of £100 million if the group’s market capitalisation hits £7.6 billion by June 2023.

Last year’s controversy wiped more than £1 billion off the company’s value and after the shares fell 6¼p, or 4 per cent, to close on 154½p last night it is now worth about £2 billion.

Southcoast. The closed period for boohoo is the same as it is for everyone else 30 calendar days before interim or final results publication. At all other times there are no closed periods for directors or pmdr’s but they are bound by insider trading rules at all times.

When the director made that purchase it didn’t signal that there we no trading updates coming at all.

Put simply you have misinterpreted what the closed period means and have stated that because a director purchased shares in November the company are not now not allowed to make any announcement until the 5th of December which is simply wrong.

Scb - doesnt matter what the shorts did after a director buy or do after the 5th the rules will still be the same!

South coast - I think you misunderstand the information that you have cut and paste titled understanding close periods

The closed period is is a fixed amount of time prior to official published results. If a company issued quarterly statements to the market then for a period prior to each statement directors and people deemed to have relevant management responsibility in the organisation are prevented from trading.

This does not then mean every time a director or person with relevant management responsibility trades in shares that an automatic ban on ad hoc statements or updates comes into play for the next 30 days!

A company is obliged to communicate with the markets within a given timeframe if something happens that could materially affect share price such as say the final value of the court case you refer to. If management have details of this information prior to the market being made aware they are prevented from dealing in the company shares.

But nowhere in the rules does it state that once a director or manager has purchased shares the company cannot then issue a relevant update. In fact the rules around timeliness of informing the market state the opposite and a company cannot hold back information that might have a material effect on the share price.

So once the director bought if there was anything of relevance to say at any point after that purchase the company were perfectly within their rights and in some instances even obliged to issue the relevant rns regardless of the director share dealings.

So actually as I pointed out previously the only thing the market could know once the direct purchased those shares was that the director had purchased shares.

Southcoast - no the closed period refers to the 30 day period prior to the release of official results updates be they quarterly half yearly or the final results. The rule is there because typically directors and other management within an organisation will be aware of all performance data a week or two after the period has ended which is often several weeks before details are published to the market. The close period effectively prevents directors from taking advantage of the knowledge they have that share holders do not.

At all other times there are separate rules in place to ensure that directors or persons with management responsibility cannot trade based on insider knowledge they have and whilst this typically affects directors and senior managers in reality it applies to anyone in the company, for example if kamani had a meeting at a boohoo site with someone who was planning to make an offer for the company and the bloke on security overheard them saying goodbye to each other in reception and picked up on the fact an offer would be forthcoming in a week or two (and that the board were amenable to it) then the security guard could not trade in shares because he would be acting on insider knowledge.

However the closed period isn’t a moveable feast so to speak. A director purchasing shares today wouldn’t mean the company cannot report anything for the next 30 days. It only applies to the 30 days prior to planned results updates.

The minute he purchased shares the only thing the market knew for sure was that some director of boohoo had purchased shares in the company, nothing more and nothing less.