Member Info for ragtrade

Share Expert please change your name to Flip Flop, also whilst at it get a day job.

OMG!!! B/H needs to go onto FTSE to stop all the chat on here!! I'm all for a discussion but this is getting beyond a joke. I am invested heavily and in B/H and Asos but the chat on Asos (LSE) is far more sparse and considered. This share has now become a long game, the next marker will soon be Asos Results. I'm sure they will be in line or above market expectation this should give B/H shares a lift and there maybe just too many positives to keep it back. Everyone needs to go on hols and comeback in NY.

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And this brand is about to get stomped on by every major fashion companies globally to take back the lost revenue

Been in fashion business for 30 years, only thing i know, what major fashion companies, there dropping like flies due to the perfect storm of covid and switch to on line, Topshop, DP's, River, New Looks, Pea****s etc etc etc slow to adopt and adapt even Next is questioning if it needs as many stores and is slowly becoming an aggregator, Inditex got too many countries on it's mind and not bothered about anyone else jsut gets on with it, H&M, ok if you like Black and White, good prices and as more credible than most on sustainability but they do not understand the UK niche of Boo Hoo who are ticking all the boxes for their audience and will now try and reach out to other demographics. One thing i will say again is that Asos is still dominant power on line, the more Brands (altho scaled back a bit) the wider the appeal and there own brand in terms of size and volume knocks B/H into next week but it's being going since 2000 so not surprsing.

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So you're friends tell you there is a move to less volume but high quality but they then tell you that Topshop and the like are loading up the war chest with cheap clothing and influencers. Were you all drunk when you were discussing this or were they two different groups of friends.

I can categorically tell you this is utter B/S, i supply the this sector and whilst B/H is a bit narrow on demographic they totally recognise this hence the purchase of other Brands (they do need to do work on their Menswear tho). Primark are the leader in cheap fashion and their figures (when open !!!!) head only one way North!! B/H is massively driving this brand with influencers and it's working, forget sustainability it's way down the list.

ggg21 Asos was listed in 2003, BH is def a rooky, the way Pinstripe worked is not the way you work with a listed Brand, hence the need for a John Lyttle. The are come from a rag trade trading back ground, good in some respects bad in others, Nick Robertsons back ground altho connected through his Grandfather to rag trade was far more detached and not burdened in some ways to any previous company. BH has to shake off the Manchester Wholesaler tag, it can do it with JL and will do it but the institutions are wary and with good reason. Like many companies Asos does have issues from time to time but at least these have been issues of investment eg German/US distribution and going from UK focused to Global, they are not fundamental issues about workers rights. Of course they will put right but one of the reasons this share has not flown is caution is being shown.

Given i posted the below earlier and the fact that most know what they would sell at can i ask what price people would stop buying at, eg where they thought it was over valued, most want this to go above £4.40 and think it should based o latest results but would you, if today sitting on a pile of cash, invest at £4.40 or above.

posted earlier
Sentiment is what's going to drive this share, performance is already there. Asos are the slick mature leader in this sector, broad appeal, professional and have pretty much thrown out any banana skins they had. BH is the rooky, bit of a maverick and whilst i think the MM are excited about its prospects you cannot blame any nervousness about piling in on BH, are all the skeletons out of the Kamani closet, the media def not helping this cautious approach. John Lyttle is well versed in just about every aspect of the rag trade inc compliance, having worked for some of the best and toughest in the businss he is a experienced and very bright operator but can he control the mavericks around him in every area to turn this young rooky upstart into a slicker wiser more mature company that appeals to the City. I think he def can but you can fully understand the Cities reticence. Take a look a what happened to Joe Bloggs, Shami Ahmed, won't take you long if you Google it, of course different times and different era of Fashion and not for one minute suggesting that BH will go down this rabbit hole but they still have someway to go to fully gain the Markets trust that they maybe a bit brash but they really do know what they are doing and most importantly given recent events that they really do know how to behave and run a tight albeit fast brash in your face ship.

Paul are you a broker who specialises in Fast Fashion Retail?

And the most traded share today by Value was....... drum roll..... BH
BTW worth a read
How Algos changed the market rhythm
https://www.ft.com/content/fdc1c064-1142-11e9-a581-4ff78404524e

Bit harsh Angla, part of the fun is guessing, most people take it with a pinch of salt, i think the unpredictability of this share is part of the fun, anyone puts in money they can't afford for a quick turn should probably be playing the slots instead. BH not really an Asos yet but they do have potential, share will rise first thing tomorrow, how much before it falls back god knows, it may not and go off on a run, that's part of the fun!

I refer you to my mssges yesterday on this! Turkey is a good option but expensive, Pakistan is problematic high minimums and slow, Sri Lanka the same, India is the sweet spot, as i mentioned y.day not sure why this obsession with UK they have many other options and costs are cheaper, one word of caution tho, compliance is hard enough to control in your back yard let alone 1000's of miles away, they will have to have there compliance teams all over it, many many retailer and e-tailers struggle with this as you simply cannot watch dog every single order, best way to try control is massive fines and on the spot unannounced inspections by compliance teams.

Asos have reduced their Brand offer, own buy quatity's are big!

Shamsheer -Agree with most of your sentiment but Asos is still the dominant player in this sector, BH have over 1 Billion to go in t/o to catch them up. One of the biggest dangers with BH is that they are a bit one dimensional, Asos's own buy is very strong across both Women's and Men's, BH still very Womenswear Centric and has someway to go on Men's. The quantities that Asos can move on some of there basic Men's lines are in excess of 100k pcs a season, that's just on one line, BH Mens are still draggging along the bottom at 200pcs on most of their line buys, Women's of course is bit higher and granted the width is massive but this is not actually a good thing. Asos also have a very broad appeal to both Townie Lad/Ladette market plus the more Indie customer, they offer so many other Brands inc BH (or did!) So BH are bringing in future own buy Brands but again very targeted to similar customer, Warehouse/Oasis perhaps exception but they haven't done much with them yet. So i'd say great job by BH so far, tomorrow will be really interesting and fingers crossed these shares rocket (i'm in for alot!) but this sector is notoriously fickle so long long term they really have to keep their eye on the ball and it speaks volumes that all their Brands are own buy, so far no cross fertilization coming back on wholesale the other way which is very bold but i can't help thinking they may have missed a trick to broadening out their appeal.

There is a third risk - the supply costs to BooHoo as costs go up due to LW being paid by the Leicester factories. There test and replace model cannot be achieved with foreign factories that have a cheaper cost base

Not correct, which country are you talking about, perhaps not from Turkey but if def can from a vertical country like India and the £ is not under pressure from rupee, there is also a duty kick back GSP from India that reduces the rate of duty. They do have options its not right to say UK is be all and end all, lead times also massively reduced from India as country is fully vertical like Turkey.

2) Will customers be put off the brand, reducing sales

Noooooo def not, barely on the their radar, bit like sustainability it's no even on their list when buying, in order of preference, price, speed, ease of transaction and return, does my bum look big in this errr no coz social media is telling you that you look great in BH

Both Next and Asos will buy back in soon, especially for Christmas, altho has already been mentioned it really is small potatoes. As for margins being affected by fty local sourcing etc again as i mentioned y.day thay can equally source overseas, lead times are down to two weeks Ex as inventory is being kept in stock to feed FF and costs are actually cheaper so they can even afford to fly goods in.

Perhaps small investors are a bit unsure of BH but the institutions really should be biting hard on this share, since L/D sales in this sector have only gone one way and that's up, we are seeing and will continue to see consolidation of retailers not manging to make the leap from retail to pure e-tail, the dead wood is being cleared out. I'm no lover of BH as a Brand but they are shrewd and have one of the best CEO's in the business. I'm sure that the lack of wholesale may have tempered there sales somewhat but in reality these wholesale buys are at much lower margins and if they cannot buy it from a 3rd party then they will just default to BH website which actually means that the margins should offset and missed sales. You cannot watch dog every single order that is put with a factory it's impossible, you'd have to have a army of QA people camped out in every factory it's just not practical, what the Leics scandal has shown is the bad factories that cannot be trusted this will now have been weeded out, in reality the young Girl from Newcastle who wants an out fit for the weekend only really cares about cost, speed, ease of purchase and return, BH ticks all these boxes and has a marketing campaign that tells her that she is bang on trend, job done. So with Christmas looming and CV still roaming BH is set fair to cash in even more, Biggest issue tomorrow and coming days will be whether to carry on going long or cash in!!!!!!

Hi all sat on side lines for a while reading all this. I supply FF out of India to UK e-tailers/retailer, we have lead times down to 2 weeks ex, prices cheaper than UK despite the Duty and when and if a trade deal comes Duty on clothes could be non existent. BH is not reliant on UK period and with JL at helm they have one of the best guys in the trade.