Boohoo Share Discussion Threads

[hootza616] 14/6/2019 10:08

Thanks Christh,If you are investing for years ahead why bother posting endless old news and daily share price predictions?

[christh] 14/6/2019 10:07

PANMURE

Boohoo has reported impressive Q1 growth with strong gains across all regions. We believe the business is strategically well positioned for long term expansion and that current run-rate growth is undervalued. Strong Q1 performance. boohoo continues to deliver exceptional growth with revenue +39% to £254m. A 27% uptick in UK revenue -the most mature region, representing 57% of revenue in 2019A –strikes us as particularly impressive given the challenging UK consumer environment. Gross margin maintained at c55%. No change to forecasts. The business looks to be running ahead of our estimates (2020E FY revenue growth +31%) however we consider it too early to push through upgrades. Management guidance also remains unchanged.

Powerful platform for expansion. boohoo is delivering impressive growth across all brands (boohoo +27%, PrettyLittleThing +42%, Nasty Gal +153%) and all regions (UK +27%, EU +72%, US +64%, RoW +26%). We believe this demonstrates the effectiveness of the model with its fast fashion, value-led offering winning market share. High stock turn and limited software development spend results in substantial cash generation (net cash increased to £194m), providing the resources to self-fund further expansion. Reiterate BUY recommendation. With a multi-brand, international strategy we believe boohoo is well positioned for long term expansion and that the current run-rate of growth is being fundamentally undervalued. Benchmarking against Inditex we see upside of over 30% to the current share price.

PEEL HUNT

Relevance wins.
Despite the weak High Street and industry data, boohoo has enjoyed one if its strongest weeks outside of peak in May, as the group’s brands continue to resonate strongly with customers across all markets. Group revenue growth of 39% for Q1 came ahead of consensus (+35%) but behind our top-of-the range 43.8%. Group gross margin was down 20bps in the quarter, in line with our expectations. Combined group performance put boohoo at the top of the UK Hitwise rankings in May, for the first time. By territory, the group continues to make strong progress across all markets, with UK +27%, Europe +72% and the US +64%. boohoo brand momentum continues. boohoo brands continued the strong momentum shown in P4 (Jan/Feb 2019), with sales up 27% to £123.5m, coming in ahead of consensus (18%) and PHe (25%). Strong gross margin performance, +210bps illustrates the strength of the offer.

Nasty Gal starting to resonate in the UK. Nasty Gal also performed strongly, with the brand is running ahead of PLT at the same stage in its lifecycle. Sales increased by 153% to £18.2m, ahead of PHe (+132%) and consensus (74%). Medium term growth assumptions for Nasty Gal are relatively modest (50%-60% for the next two years) against the aggressive historical growth profiles of boohoo and PLT, suggesting medium term upside if Nasty Gal can develop into a similar scale business as the lead two brands. PLT sales +42%, but below consensus. The gap to our numbers was on PLT, with sales up 42% – consensus was looking for 53% growth, PHe assumptions were set at 60%. Coming up against c+160% comparatives, we are very relaxed on performance, as PLT continues to deliver strong growth and customer KPIs. Both the market and our growth profile assumes a slowing growth rate over 2019/20. PLT margins were also down 280bps over Q1, coming up against tough comparatives. Looking ahead, PLT comparatives fall sharply in Q2 against last year’s warehouse move, suggesting the growth rate should pick up.

Forecasts unchanged, reiterate Buy.
The Buy case for boohoo is built on the foundation of global relevance and significant medium term potential across all markets, rather than quarterly targets. The resurgence of boohoo brand and the development of Nasty Gal both score highly on this front. PLT’s growth rate against tough comparatives remains impressive, albeit below market expectations this quarter. Overall, this another strong performance against a weakened High Street backdrop. Trades on 42x PER, 21x EV/EBITDA, 2x sales the shares trade on a deserved premium to peers

[guruofcanada] 14/6/2019 10:03

Volume has dropped today and share price seems to be forming new platform at what I consider a pivot price of 215. End of the summer might still see it gap down fully before April 2020 rise to break that ceiling 248 to form a new range. I will be adding 30,000 at this price and double if it does gap down as the chart suggests - that would take some heavy shorters to do their job, given the cash balance increase (which no one seems to have focused on as it gives them options post brexit) I’m not sure if they would gamble unless they already did so above today’s share price short tracker will reveal by Monday.
One thing people need to remember is that no share goes up/down in a straight line unless the company dies!

[christh] 13/6/2019 19:00

Director Brian Small bought 20,000 at 222.2p today 13 June 2019

[cheek212] 13/6/2019 17:50

Good to see a director buying some shares rather than gifted to them.

[christh] 13/6/2019 16:27

Hootza616
Never sell, Adopt Buffett's principle.
When you BUY quality you leave it until it achieves your target.

I am an investor, not a trader/speculator/shorter.

I see my investments come to fruition years ahead.

[hootza616] 13/6/2019 16:23

Do you ever sell Christh? You know it's the only way you make a profit!

[christh] 13/6/2019 16:09

ghostme
wrong, I do not speak to that character....

I express my own opinions, my research, the way I see it and nothing else.

I do thoroughly research before I post, however the share price might not go the way
I forecast because of market conditions.

But there is always tomorrow...and today is a Buying opportunity to make profits in the future

[christh] 13/6/2019 16:00

Boohoo.com Broker.................. Views
Date.....Broker...................Recomm.....New Target....Notes
13 Jun.....Barclays Capital.......Equal weight 240.00-Reiterates
13 Jun.....Numis.....................Buy.........290.00 -Reiterates
12 Jun.....Jefferies International......Buy.....300.00-Reiterates
12 Jun.....Liberum Capital..............Buy.............280.00 -Reiterates
12 Jun.....Shore Capital...............Hold........247.00-Downgrades
More Boohoo.com Broker Views >

[ghostme] 13/6/2019 16:00

Amusing the two boards biggest losers in christ and guru the only ones posting and speaking to one another, what is it they say?

[guruofcanada] 13/6/2019 13:47

Seems like a very steep hill to climb christh. Aren’t you out of breath yet with all that huffing and puffing?

[christh] 13/6/2019 12:21

recovery due this afternoon

still 240p on the cards today...

[guruofcanada] 13/6/2019 12:05

I have to laugh at some of the names that suddenly appeared on here - morphed from old rivals that clearly copied my daytrade yesterday and today appear to be making a real mess of themselves! I’ve said all a long that the share price is overvalued today, there’s a difference between that and having a share that has long term potential. The muppets that think the share price will magically jump to that of a PE over over 100 need their head looking at!

It’s no wonder that PIs invariably lose their money!

[christh] 13/6/2019 10:31

Investor and analyst conference call

boohoo group plc conference call for analysts and investors

A live audio webcast will be available at 9.30am via the following link:

[christh] 13/6/2019 10:02

Boohoo credits floral prints for sales surge

Surging demand for floral prints and soft tailored dresses have helped Boohoo post a huge jump in revenue for three months to the end of May.

The fast fashion retailer, which also owns PrettyLittleThing and Nasty Gal, said strong block colours and ankle boots had also sold well.

Group sales jumped 39% to £254.3m, although Boohoo's lofty profit margins dipped.

It came as Zara-owner Inditex posted record sales of €5.9bn for the quarter.

The growth contrasts with tough times seen at many other retailers - particularly those focused on the UK High Street.

[christh] 13/6/2019 09:41

same pattern as yesterday...

push down in the morning and then the market makers push it up.

Likely to rise in the afternoon , probably 240p

[ghostme] 13/6/2019 09:41

See guru is making a mess of himself as usual desperate comes to mind

[guruofcanada] 13/6/2019 09:05

Based on what gareth?

[gareth004] 13/6/2019 08:36

Should break the 250 before long...

[guruofcanada] 13/6/2019 08:10

Trade the news tcarter! Trade the history

[tcarter66208] 13/6/2019 08:03

Guruofcanada you were chatting of big shorts a few weeks ago.... Like it's going bk to 180