Boohoo Share Discussion Threads

[telbap] 19/7/2018 21:51

Well at least we closed blue.

[philanderer] 18/7/2018 17:39

😎👍🏼

[losses] 18/7/2018 17:15

Got 90k cash in here...

[philanderer] 18/7/2018 16:52

Here we go, from proactiveinvestors.co.uk ...........


Boohoo shares strut higher on Liberum upgrade

2018-07-18 11:39:00

Liberum raised its rating on Boohoo to ‘buy’ from ‘hold’ and lifted its target price to £2.40 from £2.20

Boohoo Group PLC (LON:BOO) shares strutted higher after Liberum upgraded the stock, citing an improvement in its key performance indicators.

Liberum raised its rating on the online fashion retailer to ‘buy’ from ‘hold’ and lifted its target price to £2.40 from £2.20.

In a note on online retailers, the broker said Boohoo has shown consistent improvement in sales retention and a higher customer lifetime value (LTV).

Boohoo also has the best ratio of LTV to customer acquisition costs (CAC) compared to its peers, Liberum said.

The LTV:CAC ratio is a key measure comparing the value of a customer over its lifetime against the cost of acquiring that customer.

“We view Boohoo as an online fast fashion version of Inditex where through a collection of brands it operates in the highly competitive youth-orientated segment of the fashion market,” Liberum said.

“While some may call into question Boohoo’s relatively high customer attrition rates, the company’s high sales retention and resultant LTV:CAC spread signals that the efficiency of its marketing spending is high enough to justify continuing to invest in acquiring customers at a strong rate

Liberum said Boohoo’s LTV:CAC and ROI have been driven by its higher sales retention rate and additional customers from its acquisitions of the Nasty Gal and Pretty Little Thing (PLT).

Boohoo agreed to buy Nasty Gal in February last year after snapping up a controlling stake PLT in December 2016.

Boohoo growing pains

But the broker said a key risk for the company is that it was in a relatively early stage growth compared to rivals ASOS plc (LON:ASC) and Zalando. Being at an early stage of growth naturally leads to higher levels of volatility in KPIs, Liberum said.

“An important support to its ongoing success will be continued investment to develop its warehousing and distribution infrastructure, which will account for the majority of its guided £235mln of capital expenditure over 2019-21,” Liberum added.

“This is intended to lay the platform to support a more than tripling of sales to £3bn (vs. £580m in FY18).”

Boohoo’s growing pains have been reflected by the recent decision to temporarily switch off its next day delivery option for PLT customers as part of plans for the relocation of inventory to a separate third-party managed warehouse in the first half of 2019.

LIberum expects to see little operational leverage overall as the group continues to invest behind its proposition and service.

It has forecast a three-year sales compound annual growth rate (CAGR) of 30.5% and earnings per share CAGR of 23.3%.

Shares rose 2.2% to 212p in late morning trading.

[philanderer] 18/7/2018 16:46

Couldn't see a target price guys.

[christh] 18/7/2018 13:18

Buy some more and it will hold 214p

[losses] 18/7/2018 13:06

Will it hold 210??

[christh] 18/7/2018 11:06

Liberum upgrading to BUY, the old target price was 240p

So its higher than 240p , likely to match Peel Hunt 300p the.

[telbap] 18/7/2018 09:52

O think somthing else afoot Phil.Plenty broker upgrades before did not have this effect on very low volume

[losses] 18/7/2018 09:36

What's the target price Phil?

[philanderer] 18/7/2018 09:05

Liberum upgrading to BUY

[losses] 18/7/2018 09:05

Juicy rise this morning

[telbap] 17/7/2018 17:08

#poorramping......!Love it a new Twitter trending #

[losses] 17/7/2018 14:14

ASOS up 4%... nothing happening here... need to break and hold above 210

[christh] 17/7/2018 12:22

enough said.

[panic investor] 17/7/2018 12:19

Chris you speak the biggest load of tosh on these bb's - no idea about price action chart wise and just come up with fluffy statements.Get a grip man - and as for swearing ...... well it just about sums things upBy all means follow people around investing in quality stocks but just stay stum .... most will come good without senseless ramping, and poor ramping at that

[christh] 17/7/2018 12:16

by Alliance News | 2nd July 2018 18:37

Old Mutual Global took its stake in fashion retailer Boohoo.com from an unspecified number to 17%.
Old Mutual Global now has an interest in 194.4 million of Boohoo.com's 1.15 billion issued shares.

[telbap] 17/7/2018 11:51

I agree with previously posted sentiment from the sensible posters here. This has become such an in predictable stock, until we firmly break 210/215 with good volume and possibly even an update of some sort regarfs the boohoo warehouse upgrade, we will continually be traded.Sit back, relax, enjoy the ride.

[christh] 17/7/2018 11:04

A reminder
-------------------------------------
Tuesday 12 June 2018 8:15am
Boohoo revenue jumps more than 50 per cent as it plugs 'record levels' of investment into infrastructure

It might be carnage on the high street for numerous big names at the moment, but Boohoo is going from strength to strength in online retail.

It has reported a 53 per cent rise in revenue for the first quarter of the year as it eyes more market share gains.

Read more: Here's what the City expects from Boohoo's results
The figures

Boohoo has set the bar high - often lifting guidance for its financial results - and today said trading for the first quarter of the 2019 financial year had been strong, and in line with expectations.

Shares dipped in early trading - while it was a big lift in revenues for Boohoo, it may not have been quite as big a jump as some investors were hoping.

It reported strong revenue growth, with hefty market share gains across all markets, with UK sales up 49 per cent and international rising by 60 per cent. Overall, revenue rose by 52 per cent to £183.6m.

All of its brands, Boohoo, PrettyLittleThing, and Nasty Gal reported increases in revenue over the period.

Looking ahead, for the full year, Boohoo said it continues to expect group revenue growth of 35 per cent to 40 per cent, with adjusted earnings before interest, tax, depreciation and amortisation margin between nine and 10 per cent.

The retailer said that all other guidance, including its medium-term expectation of delivering sales growth of at least 25 per cent each year, were unchanged.
Why it's interesting

The online retailer has been ploughing investment into infrastructure, and said today it continues to plug "record levels" into it, as it eyes more rapid growth. Boohoo wants to develop a distribution network capable of supporting £3bn of net sales globally, and the company said today the distribution centre extension and automation project at Burnley remained on track to complete towards the end of the financial year.

Boohoo took a 66 per cent stake in PrettyLittleThing, founded by the son of Boohoo boss Mahmud Kamani, at the end of 2016 and it is a big driver of growth for the company. PrettyLittleThing will move to its own warehouse in the second half of the financial year.
What the company said
----------------------

Mahmud Kamani and Carol Kane, joint chief executives, said:

"Our multi-brand strategy is delivering above-market rates of growth globally. Significant market share gains have been achieved in all of our key focus markets, with our compelling combination of the latest fashion at incredible prices, backed by great customer service resonating strongly with our customers.

The scale of group revenue is aligning with our ambition to become one of the dominant global online retailers and our focus on profitability continues to deliver industry-leading margins".


www.cityam.com/287393/boohoo-revenue-jumps-more-than-50%-plugs-record

[sogoesit] 17/7/2018 09:39

Oh no.... drivelling all over the place I assume from the filtered ramper-in-chief.

Could this be the turn in the share price finally?