Member Info for WolfofWarks

Of course people like bricks and mortar shopping. It would help if there was some shops of course and if they carried decent stock. They practically force you online once you're in them anyway.

He'll be able to find out if they actually make any money or not to go along with him impeccable research on BOO :)

I'm going to break this down for you PP1:

'‘ WolfofWarks - also, if items are put into capex then the owness is on the company to figure out if they should be included in cost of goods sale (cogs)

When items are put into exceptional costs then the company don't have to consider putting them into cost of goods sale (cogs). '

The only items that go in COGS are direct costs of buying in or producing a product. So if an item is treated as Capex it sits instead on the balance sheet with only the depreciation write down going into the profit and loss with only the direct cost of manufacturing (say plant nd machinery for production) going into CGS.

The distribution centre costs should go into Boohoo's line for Distribution Costs.

'The reason companies put these items into exceptional charges is to exclude them completely from cogs and then for Boohoo their loss doesn't look as bad as it should.'

As above this is incorrect. You are talking about Gross profit which they wouldn't form part of anyway. They are going off further down the income statement so are included with the profit before tax line.

'The Sheffield automation and the USA start up costs and possibly currency hedging could be included in cost of goods sale (cogs) which means Boohoo's loss would be much higher than £91m.’ '

Why? Are they direct costs of manufacturing product or are they distribution centres or maybe a hybrid of both. The currency hedge was in relation to currency booked for the distribution centre so should not go in COGS as this would have been a capital item has the project not been disrupted.

‘ WolfofWarks - also, if items are put into capex then the owness is on the company to figure out if they should be included in cost of goods sale (cogs)

When items are put into exceptional costs then the company don't have to consider putting them into cost of goods sale (cogs).

The reason companies put these items into exceptional charges is to exclude them completely from cogs and then for Boohoo their loss doesn't look as bad as it should.

The Sheffield automation and the USA start up costs and possibly currency hedging could be included in cost of goods sale (cogs) which means Boohoo's loss would be much higher than £91m.’

This is getting ridiculous.

Not one part of this post is correct.

PP1 - that’s absolute nonsense. You are confusing gross profit with net profit. The £70m you quoted earlier was actually profit before tax which would be after exceptional costs. Considering you claim to have studied these results it just adds more weight to the fact that you don’t know your ar se from your elbow.

The warehousing costs wouldn’t go in cost of sales anyway they would go in distribution costs.

Gross Profit is sales - cost of sales. Cost of sales is materials plus labour plus direct cost of manufacturing overheads.

Here’s another question for you PP1. If boohoo had treated these costs as capital expenditure what would have been the impact on the final stated profit figure?

PP1 - you do not understand what you are talking about. Profit before tax is a statutory measure so the £91m is quoted after exceptional costs. These costs are pulled out of the normal admin/distribution costs as their inclusion, often due to the specific one off nature of the costs, would distort the underlying picture.

They also are not capital expenditure. They are disruption costs to capital projects, impairment (you most likely do not know what this even is), costs relating to discontinued operations, reclassified onerous hedges, redundancy costs.

Do you even understand what capital expenditure is? Can you explain impairment to me? I would be interest to know how you think a currency hedge works in practise and how it should be presented in the accounts? Perhaps give your broker a call, flick through your paid-for research or maybe Google it eh?

Then we can enjoy days on end of repeated cut and pastes regurgitating the same shi t over and over again like a 12 year old.

You should be able to ask investor relations for it.

'said people close to the company'

A company doesn't have to make money in twelve months in order to become investable you might as well invest in BT. They have to have a plan and have a reasonably chance of pulling it off and finance in place. The SP has to be at a decent entry point, as I believe now, which makes the risk reward an attractive proposition.

PP1 - My 18 months remark was in relation to their delivery charges. As I keep telling you and you keep choosing to ignore Shein is just another competitor. Their clothes are poor quality, they take ages to deliver, they are not fast fashion. They are not as agile as companies with local design and manufacturing. Boohoo and ASOS have some USPs that Shein cannot compete with. A girl cannot buy dresses next day from the them before a night out.

We don't even know if they make any money or what their margins are.

West - my wife's the same. What I would spend on one jumper she would buy a bag full of stuff.

Excellant post by the way.

PP1 - People are asking you questions because it is quite evident that you neither intelligence or knowledge to answer them. It's blindingly obvious.

'Come up with the answers for yourself and use them to debate instead of asking questions. '

That's ironic given you pay for analyst research and Google most of your posts and repeat ad nauseam. You're an extremely simple fellow.

How can you promote Shein over and over again when you don't seem to know the first thing about their financials in relation to Boohoo? You're walking blind.

'Go away you stupid man.'

The only simpleton here is you my friend. Repeating the same dumb posts over and over again. You're posts read like a poor GCSE project.

Macro - there is no shareholders vote here, once the bankruptcy started equity holders lost all their power.

In terms of branch, etc, CW Plc is basically a group of companies owned by the Plc - all of those companies will be given to Newco allowing the trading operations to exit C11 leaving the CW Plc in which you hold equity basically a shell.

'When are you going to learn, this is about online fast fashion and not about other businesses.

Shein is cheaper than Boohoo and Boohoo can't undercut Shein's prices.

Shein is taking market share from everyone, Boohoo, ASOS, Next, Zalando, H and M, etc., etc.

Shein is a huge threat to them all.'

What is Shein's turnover?

What is Sheins gross margin?

How much money do Shein make?

Why has their valuation plummeted, like Boohoo and ASOS, for their latest funding round?

'The exceptional costs in these financial statements include: additional disruption costs associated with the installation of the automation in the Sheffield facility, restructuring costs and impairment of assets associated with the closure of a UK warehousing facility and at loss-making operations, set up costs associated with the opening of a warehousing facility in the USA, the reclassification to profit or loss of discontinued cash flow hedge contracts which has arisen due to the acceleration of the opening of the warehousing facility in the USA, and redundancy costs.

Additional exceptional costs associated with the opening of the warehousing facility in the USA are expected to be incurred in the next financial year.

Are these exceptional costs or should they really be under capex for capital expenditure?'

Why would they be capital expenditure?

'The £325m Revolving Credit Facility (RCF) is unsecured against the company's assets and includes financial covenants relating to interest cover and adjusted leverage. '

PP1 - this doesn't even make sense!

"My paid for analyst research has confidential to me stamped all over it and not to be released

Try paying for some analyst research yourself, then you'll understand.

This is how they make money on analyst research by charging for it and not allowing it to be released i.e. for my eyes only.

Always pay for your own research.."

"However this will be the whole of the USA clothing market, everything.

It's not online fast fashion market share for the USA.

'

As I say always do your own research. "

Make your mind up!!

Analysts give their view, but there are different analysts with different views. The problem with you PP1 is that you dont actually have an opinion on anything you have to read and regurgitate everything someone else has said.

Boohoo have also been very open about their problems in the USA and are taking measures to mitigate those issues with some decent investment. That's good sensible management.

You're not going to get rich quick off this. It's a stable share to keep in your portfolio right. Like holding cash but with a decent return. Buy on the dips or ex dividend let it build up pay out, rinse repeat.