Member Info for WolfofWarks

‘If you wish to look at TGA's return on capial employed compared to Boohoo's return on capital employed.

TGA's in nearly 50% and Boohoo's is minus 9%.

TGA pay a dividend of nearly 9%. Boohoo pays no dividend at all and never have.

Which do you think is the better investment?’

Any dividend paying 9% is going to get cut or the SP has been roasted and SH have been burned. It’s not that easily to make 9% income that easily.

‘Didn't your read the RNS for Boohoo's fy 2023? I'm sure you did.’

I did but I’m more interested in the measures being taken to bear fruit in 2024 and 2025.

Looking back continually on what has been two tough years serves no purpose.

‘

Boohoo was a rapidly growing company in the past. it's no longer a rapidly growing company. Boohoo have stated they are trying to get back to double digit growth. I assume this to be about 10% growth.

Boohoo were able to rapidly grow in the past because there was little competition to them. They were the cheapest. Now there's loads of competition with prices cheaper than Boohoo's and customers prepared to wait longer for their purchases because of the cheap prices.’

That’s because BH is no longer a start up. It’s not exactly rocket science. Would you rather have 30% of £1 or 10% of £10?

That’s basically the stupidity of you continuing to bang on about growth in 2015 as a reasonable comparative.

Your cluelessness about anything numbers shines through.

‘Unfortunately if Boohoo have to cut their prices to get growth and have to keep their prices lower to maintain growth, then that average 4.4% net profit margin could end up much lower.’

PeePer - have you got any evidence of this happening though? You yourself posted only the other day that BH are chasing more profitable sales.

‘In ecommerce, the average net profit margin is 10%.

Bad profit margins are those that cannot sustain the business' operations or unlock growth.

For ecommerce, net profit margins below 5% are widely considered bad profit margins.

Boohoo's average net proft margin from fy2015 to fy2023 is about 4.4%’

PeePer - you can’t lump the whole of e-commerce together and come up with an average as every sector within e commerce is different. Some companies can operate at a very low margin and sell high volumes for instance and be more successful than a company with 20% margins when it comes to actual £s profit. Plus we have had this before - if you are doing such comparisons you should be looking at gross margin ideally as different companies and sectors have difference cost based and different capital structures which all affect net profit in different ways. You are very unlikely to be comparing apples with apples.

‘Cost of production should be higher as suppliers ,now pay proper wages...’

Only if you conveniently forget all the automation that has been put in place :)

BOOHOO - ADJUSTED EBITDA MARGIN AND NET PROFIT MARGIN FROM FY2015 TO FY2023

‘This is why people don’t trust EBITDA. Look at the difference between adjusted ebitda margin and net profit margin. Net profit margin is the reality of Boohoo. The highest net profit margin for Boohoo was in 2017 at 8.5%. ‘

PeePer - what you have demonstrated is why we should be looking at EBITDA. BH invested millions and millions from its capital pile in acquisitions and capital expenditure which are now being written down - having a detrimental affect on net profit but not cash as the asssts have already been paid for.

The truth is you look at neither in isolation but both together with the necessary facts and information.

‘From £2bn, Boohoo's growth has gone down.

Why would Boohoo launch a back to growth strategy because even they know their growth is slowing.

4.4% net profit margin is not enough to reinvest for future growth.

Boohoo will need a revolving credit facility for some years to come to grow the business.

Boohoo have a revolving credit facility of £325m at present.’

PeePer - you’re not telling us anything we don’t already know. Most business have some form of financing facilities. It is not a sign of weakness. You would understand that if you were not thick as mince.

‘Boohoo's revenue grew nearly 7 times from 2015 to 2019. From 2019 to 2023 Boohoo's revenue grew two times.

Slowing growth from 2019 to 2023.’

But an increase in £’s revenue added though right. This is where you need some business acumen. As a business matures the revenues do not grow as quick but become more stable and regular.

This it the point Jotam - you keep going on about me stating ‘world beating’ actions, but I never made that argument. It’s all in your head and you’ve been ranting about it ever since.

You keep calling me out for insulting you. But there is now post after post of you insulting me - mouse, budgie, etc, etc.

Most bizarre.

Jotam - you've created your own narrative through all this - you're throwing points around that we are not even discussing to mask your own inadequacies.

Hopefully you dont go about your everyday life in this manner and it's just your keyboard warrior persona playing out.

Jotam - as you well know you vote for your local MP, not the PM.

Regarding ULEZ this whole London wide expansion was not in his manifesto. He announced it in March 2022.

https://www.standard.co.uk/news/transport/ulez-expansion-greater-london-sadiq-khan-matthew-offord-jon-cruddas-b1032084.html

Now if you could please come up with the body that produced the report it would be much appreciated. What are you trying to hide?

I see now you've moved onto pollution - another topic that I never mentioned. Are these not private companies doing all the polluting? It's not the government as much as you rabid lefties would love them to be.

Hi TFG - I'm talking about the actual cost of the stock to go into the US warehouse.

Jotam - How was ULEZ a product of democracy? You'll have to explain that one to me?

Also you haven't given the details of the report you are referring to.

Less ranting more substance please.

'I do wish those decrying Boohoo would tell us how much they have made in total in the last year in other shares and how much they had invested in total in other shares.

They never do this. '

If only hey PeePer lol

'T4g - growth revenue in every geographical region for Boohoo has been decreasing for 4 years and now they're all in negative growth territory. 4 years decrease. Hence why the share price has decreased too.'

PeePer - This is how thick you are - you've contradicted your own post in the other thread.

You're too dopey to even get your misinformation correct!

'FY2020 REVENUE £1,234.88m FY2020 - NET PROFIT £72.9M IS ABOUT 6%

FY2021 REVENUE £1,745.3m FY2021 - NET PROFIT £93.4M IS ABOUT 5.5%

FY 2022 REVENUE £1,982.8m FY2022 - NET LOSS £4M IS ABOUT MINUS .2%

FY 2023 REVENUE £1,768.7M FY2023 - NET LOSS £75.6M IS ABOUT MINUS 4.5% '

'I think with shares and being up against hedge funds with their algorithmic software, I need to learn technical analysis and not rely on just fundamentals for the future. '

SCB - This is brilliant - I didn't realise PeePer was a fundamentals man. Amazing given he doesn't know the difference between gross and net, not a clue about working capital, net assets, free cash flow, etc.

His fundamental analysis must be exquisite.

That's the beauty of BH. You've got brands like Karen Millen that are still in their infancy that can add serious clout to the proposition.

Worth remember when your looking at FCF for this period they'll need to add stock to the USNDC - also if turnover is increasing they'll need to add stock elsewhere as well.

Jotam - come on the ULEZ is nothing but a tax on the poor who cannot afford to upgrade their cars and work vans. What's this report you refer to? Who was it commissioned by? Environmental reporting is extremely subjective and difficult to estimate accurately.

It's Khan's vanity project.

What about the increase in diseases that disproportionally affect the poor. Surely they will be in the rise as hundreds of pounds are taken out of people's pockets.