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Share Name Share Symbol Market Type Share ISIN Share Description
Boohoo Group Plc LSE:BOO London Ordinary Share JE00BG6L7297 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -6.60 -2.31% 279.50 48,909,886 16:35:00
Bid Price Offer Price High Price Low Price Open Price
278.50 279.10 309.00 270.00 290.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 1,234.88 92.22 5.48 51.0 3,519
Last Trade Time Trade Type Trade Size Trade Price Currency
17:48:43 O 6,024 289.028 GBX

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12/7/2020
09:20
Boohoo Daily Update: Boohoo Group Plc is listed in the General Retailers sector of the London Stock Exchange with ticker BOO. The last closing price for Boohoo was 286.10p.
Boohoo Group Plc has a 4 week average price of 197.60p and a 12 week average price of 197.60p.
The 1 year high share price is 433.30p while the 1 year low share price is currently 133.15p.
There are currently 1,258,899,050 shares in issue and the average daily traded volume is 51,674,871 shares. The market capitalisation of Boohoo Group Plc is £3,518,622,844.75.
28/5/2020
13:17
algorithmicx: https://ftalphaville.ft.com/2020/05/28/1590658694000/Markets-Now---Wednesday-27th-May-2020/ Activist short sellers get a lot of flak. There are instances of short attacks helping bring down frauds, of course, but they are hugely outnumbered by situations where a company’s known or historic issues are hyped up for a new audience. There’s an argument to say that most investors don’t really benefit from a short seller publicising in shock-horror fashion a company’s questionable governance standards and murky accounting methods. It might be that wider attention forces the company to improve these things, but improvement is not really what the short-seller wants. Attacks are designed to put executives on the defensive. The whole gambit hangs on making the target embattled, not better. Congratulations, then, to Matt Earl’s Shadowfall for breaking the mould and helping cure its victim. On Tuesday Shadowfall launched a short attack against Boohoo that had at its centre the conflict of interest around PrettyLittleThing, a frock shop still minority owned by investors including the son of the company founder. Boohoo had an option to buy the remaining 34 per cent of PrettyLittleThing up in February 2022 and now it doesn’t. Problem solved. Short case (or its central plank at least) neutralised. Everyone (apart from those short) wins. Barclays: Boohoo announced this morning that it is acquiring the remaining 34% of PLT it does not currently own for £269.8mn, potentially rising to £323.8mn, using a combination of cash and shares. This implies valuation of 1.3x / 1.5x FY21E sales and 12.2x / 14.7x FY21E EBITDA (on our estimates), including any minority discount was applied – i.e. well below the £1,650mn we have for PLT in our SOTP. In other words, we think Boohoo has paid a good price for a great asset – and we estimate this transaction creates c5% of value for shareholders. The cash used in this transaction relates to what was already on the balance sheet at Feb YE – so it does not have anything to do with the 14 May capital raise. Indeed, the company is still highly cash generative and still has £350mn of cash on the balance sheet following this transaction – plenty of M&A firepower for further opportunities. We are OW. Peel Hunt: Boohoo’s acquisition of PLT silenced the debate before it got started. At a maximum consideration of £323.8m, PLT has been valued by KPMG at £462.6m, representing c0.8x FY21 sales and c9x PAT. Our fully diluted EPS increases by c20% for FY21 onwards as the MI is eliminated in what is clearly a very accretive transaction. Boohoo retains cash of £350m on the balance sheet to fund potential M&A deals, which we suspect will focus on internationally relevant brands, potentially located overseas. The business has generated £80m in cash over Q1 too. TP raised from 350p to 425p. Stifel: We think management took the opportunity to stop the speculation and swiftly completed the acquisition ahead of time. We see the move in a positive way: PLT has contributed to the Group's momentum over the past two years by complementing the brand's portfolio and creating healthy internal competition with its other brands, and is expected to aid the global expansion of the Group. Bernstein: By absorbing PLT, notably from its pre-equity-raise cash pile, Boohoo has firmly and immediately closed the book on this matter. We do not expect the equity dilution to drag down the stock, given the strong expected performance this year and the relief at putting this governance concern to bed. The valuation looks favourable to us at £270m (potentially rising to £324m, dependent on upside on the Boohoo share price). As would have been the case in 2022, the valuation was based on an independent audit (KPMG) and accounted for the majority stake ownership structure (i.e. provided a discount to market valuation). The company is valued at 1.4X FY1 sales (BERNe) and a mid-teens earnings multiple: a considerable discount to peers and indeed the Boohoo group itself (which trades on 2.8X FY1 sales). This is well below what we assume the company would have paid in 2022 [£600m]. The company will have £350m of net cash immediately after the acquisition ... Importantly, we think that the £200m raised via equity earlier this month can be considered untouched, with the acquisition funded by the further raises and already existing net cash. We expect Boohoo's further M&A plans to be unchanged by this announcement. Our view on this deal is very positive – it addresses governance concerns immediately and consolidates a margin accretive business into the group; at a very favorable acquisition price. Investec: On our estimates, the deal would be immediately earnings enhancing (adding approximately 1p to FY21E earnings). We had previously ascribed a value of either 1.5x FY21E sales or 25x FY21E EBITDA to PLT earnings, implying a valuation in the range of £1.2bn and £1.6bn for PLT. The acquisition draws a line under recent concerns surrounding potential dilution from acquiring the remaining 34% stake in PLT. We would add that we too have no issues with the representation of free cash flow reported by boohoo or the reported profitability of PLT. Goldman: While we take no view on the transaction closing, other things equal, this transaction would enable Boohoo shareholders to fully participate in the growth potential of the Boohoo group, and would align the interests of PLT management with Boohoo shareholders (the 491p average share price target for the contingent deal consideration is the same as boohoo CEO’s incentive scheme target), and on our estimates would enhance FY21E/22E earnings by +13.6%/16.3%. Valuation: Our DCF derived 12-month price target is 430p. We are Buy rated.
27/5/2020
13:52
johnsoho: Boo share price looks as if it’s starting to recover now, certainly moving away, at the mo, from today’s lows.
27/5/2020
09:24
christh: boohoo group plc Response to share price 27/05/2020 9:06am UK Regulatory (RNS & others) Boohoo (LSE:BOO) Intraday Stock Chart Wednesday 27 May 2020 Click Here for more Boohoo Charts. TIDMBOO RNS Number : 0568O boohoo group plc 27 May 2020 For Immediate Release 27 May 2020 boohoo group plc ("boohoo" or "the Group") Response to share price boohoo (AIM: BOO), a leading online fashion group, notes the recent decline in its share price which the Group understands is in response to a short-selling note issued on 26(th) May that contains allegations of disclosing information that could be deemed to be misleading. The Group strongly refutes the allegations made in the research note, and would highlight the following to investors: Definition of Free cash flow Free cash flow is disclosed within page 9 of the Group's most recent annual results published on 22 April 2020, and contains clear definitions, alongside a full reconciliation down to net cash flow for the financial year, including items such as tax paid and dividends paid to minority shareholders. International accounting standards require the Group to fully consolidate its cash flows, and its treatment of this with respect to its subsidiary, PrettyLittleThing ("PLT") reflects this conformance with accounting standards. PLT profitability The Group strongly refutes any allegations of understating costs incurred by PLT, thereby overstating its profitability. All inter-company transactions are conducted on an arms' length basis. The Group operates a multi-brand strategy with the profitability of its more established brands such as boohoo and PLT being significantly ahead of the Group's adjusted EBITDA margin of 10.2%; with that higher margin being reinvested into new opportunities and brands that the Group has started or acquired in recent years such as boohooMAN, Nasty Gal, MissPap, Karen Millen and Coast. PLT option As disclosed at the time of the acquisition of the majority of PLT, and in the latest annual report and accounts, the Group has the option to acquire the remaining 34% minority shareholding in PLT, with the terms of the option coming into being on 28 February 2022. Under the terms of the agreement, it was agreed that an independent big-four accountancy firm would undertake a valuation exercise to determine the market value for PLT, after which a minority discount may be applied of up to 30%. Treatment of non-controlling interest In note 1 of the Group's latest Full Year Results Announcement, "Accounting Policies", the Group highlighted a change in accounting treatment with regards to the non-controlling interest, following on from a review of the agreement with its auditors, extract below: "Following a review of the accounting treatment of the non-controlling interest of shareholders in PrettyLittleThing.com Limited ("PLT"), it has been determined that the restrictions imposed by the Shareholders' Agreement require the proportion of the non-controlling interests' share of the profits of PLT to accrue in accordance with certain terms of the agreement and not as 34% as previously stated. The accumulated profit attributable to non-controlling interests of GBP8,761,000 as at 28 February 2018 has been adjusted to GBP4,018,000 and the share of profits for the year to 28 February 2019 from GBP9,687,000 to GBP3,875,000 and the difference added to retained earnings. The share of profits recognised by the non-controlling interest increases each year by 20% of 34% of the earnings of PLT from 20% of 34% to 100% of 34% over the five-year period of the agreement, as does the non-controlling interests' share of the net assets." Whilst the Group has recognised the minority interest in this manner at a statutory level, for adjusted earnings per share, the Group has deemed it appropriate to recognise the full 100% of the 34% of PLT's adjusted profit after tax to allow its shareholders and readers of the accounts to fully understand PLT's underlying profitability. To not do so would risk over-stating the Group's current adjusted earnings per share, and understate the minority shareholders' likely future interest in the after-tax profits of PLT. Share placing The Group's recent share placing, raised gross proceeds of GBP197.7m. As previously stated, the Group intends to use the net proceeds of the Placing to take advantage of numerous opportunities that are likely to emerge in the global fashion industry over the coming months, particularly following the disruption caused by the onset of COVID-19. The Group continues to review a number of possible M&A opportunities and will update shareholders as required. I Saw It First I Saw It First is an online fashion business, based in the UK, set up by Jalal Kamani in 2016, having previously worked at boohoo group. Jalal Kamani retains a small holding in boohoo group plc (0.65%). The business is an unrelated entity to boohoo group and is a smaller competitor in a highly fragmented marketplace. Notice of trading update The Group will provide an update for the three month trading period to May 31st 2020 on June 17(th) 2020. -ends- https://uk.advfn.com/stock-market/london/boohoo-BOO/share-news/boohoo-group-plc-Response-to-share-price/82540343
22/4/2020
11:27
christh: Boohoo revealed impressive full-year figures this morning. Revenue jumped by 44% to £1.23 billion – slightly above guidance, while pre-tax profit rose by 54% to £92.2 million. ................Boohoo share price set to continue rebound The UK unit saw revenue increase by 39% while the international operation registered a 51% rise. The overseas division now accounts for 45% of total revenue, and this should help the company in the long run as geographical diversification will lower risk. Today’s update should see Boohoo’s share price continue to rebound from last month’s sharp fall. Gross margins slipped by 70 points to 54%, and that was blamed on the company investing in growing new brands, so some teething problems are to be expected. Boohoo ended the last financial year on a high note, and that positive momentum was carried into the first few weeks of this year. The health crisis initially had a negative impact on sales, but things have picked up again as people have adjusted to the new environment. The fashion house has a ‘robust’ balance sheet. It has £240 million in cash, which is an increase of 26% on the year, so it’s liquidity position is healthy. On account of the Covid-19 uncertainty, the group has not issued guidance. Retailer strikes winning formula For a stock in the retail sector, Boohoo’s share price had enjoyed an impressive run in recent years. The stock hit an all-time high in January – which not many London-listed companies can boast. The firm seems to have the winning formula, as fashionable clothing and essentially an online-only operation are helping the company standout from others in the industry. E-commerce has taken off in recent years, particularly with younger shoppers, and that’s Boohoo’s target market. In January, the Boohoo share price received a nice boost when the group posted a 44% increase in revenue for the Christmas period. On account of the impressive trading over the holidays, it’s full-year revenue guidance was lifted to 40%-43%, while the previous forecast was for between 33% and 38% growth. Boohoo entered the pandemic in a strong position, so it stands to reason that it should weather the storm better than most of its competitors. Traditional high-street retailers find it tough to compete with Boohoo, with it essentially being an online-only group – so costs are relatively small as it is not burdened with expensive rents for stores. The government-imposed lockdowns should give Boohoo even more of an edge over its rivals because high streets have become ghost towns. Earlier this month, ASOS revealed a 21% rise in first-half revenue, but sales in recent weeks have fallen by 20-25% on account of the Covid-19 crisis, so consumer sentiment clearly took a knock because of the health crisis. Once things go back to normal, Boohoo should be well positioned as many of its competitors will be licking their wounds from the health emergency. The Boohoo share price slumped from roughly 330p in mid-February, before the coronavirus took hold in Europe, to 133p in the middle of last month. Since the lows of March, the Boohoo share price is up approximately 103% - which is a massive rebound. Should the stock continue to rally from current levels, it might seek to retest the 300p zone. hTtps://www.cmcmarkets.com/en-gb/news-and-analysis/boohoo-share-price-the-rebound-is-poised-to-continue
21/4/2020
14:15
christh: London | Tuesday 21 January 2020 10:32 When is ASOS’s earnings date? ASOS, the AIM-listed online clothing retailer, will report results for the four months to the end of December 2019 on Thursday, 23 January 2020, at 7 AM GMT. This will be the first update of the new financial year since it released its annual results for the 12 months to the end of August 2019. ASOS earnings preview: what does the City expect? Investors are hoping ASOS will bounce back when it releases its first set of results for the new financial year after releasing ‘disappointing’ annual earnings last October. ASOS has been investing heavily to scale up the business and expand its European and US operations, but admitted this was ‘more challenging’ and ‘more disruptive than we originally anticipated’. The significant cost and complexity of its plans filtered through to its annual results, when pre-tax profit plunged 68% to £33.1 million from £102 million, and it ended August with £90.5 million worth of net debt compared to over £42 million of net cash the year before. Sales grew in every geographic region to push overall revenue up by 13%, helped by a 10% lift in the number of customers. However, the value of goods being bought by each customer dipped and margins contracted. This has weighed on ASOS shares over the past year. The stock has failed to fully recover from a sharp fall experienced in December 2018, when it made the first of several reductions to its guidance. In fact, it has struggled to stick to its guidance so much that the company’s new finance director, Mathew Dunn, has said ASOS will no longer issue a ‘narrow rigid guidance’ and will have targets focused on free cash flow rather than sales and margins. ASOS share price chartSource: ProRealTime But ASOS is now hoping to start reaping the rewards of its investment, which should pave the way for better results in the year to the end of August 2020. The company said it has ‘identified the root causes’ of its operational issues and has already started to resolve the problems, and that capital expenditure will fall back to ‘normal levels’ after three years of intense spending. ‘Having invested heavily into the platform and foundations of the business over the last few years, both in terms of physical infrastructure and technology, our focus now shifts to enhancing the capabilities needed to ensure we leverage these investments. With the current investment in the global platform largely complete, this year represents the end of a period of elevated capital spend which we expect to fall towards more normal levels going forward,’ said chief executive Nick Beighton last October. Notably, this week’s set of results will cover the all-important ‘golden quarter’ for retailers that includes Black Friday and Christmas. ASOS had a torrid time in 2018, when it refrained from dropping prices as much as it had in the past, causing it to lose custom, but has said it was in a much better position to capitalise in 2019. That could give its results a boost considering they will be coming up against weak comparables for the year before. ASOS shares chase upside after a tough year ASOS believes it is over the worst of its problems and should begin to see the benefits of its investments and expansion. Spending has past its peak and there is a greater focus on cash flow, and analysts are expecting the company to deliver better results in the 2020 financial year. The table below is what analysts expect ASOS to deliver in the year to the end of August 2020 compared to what it delivered in its last set of annual results. Annual consensus ...................................FY2019 results........................................ FY2020 consensus Sales................................... £2.73 billion.....................................£3.11 billion Sales growth ........................13%...............................................14.1% Pre-tax profit......................... £33.1 million............................... £33.1 million Earnings per share (EPS)..........29.4p....................................... 51.9p Capex....................................... £221.6 million.......................... £154 million Net debt..................................... £90.5 million........................... £79 million Source: ASOS-compiled consensus, last updated 7 January 2020 But should investors consider Boohoo instead? ASOS was the most valuable stock listed on AIM before shares took a considerable knock in December 2018. Today, it has lost that crown and that is significant considering it sits in second place behind its biggest rival, Boohoo. While ASOS shares are trading a smidgen higher than a year ago, Boohoo shares have rallied to hit a fresh all-time high. Boohoo share price chartSource: ProRealTime It has been well-deserved, with Boohoo having delivered impressive growth. Like ASOS, Boohoo has also been expanding its international presence, but it has delivered it in a much smoother fashion. Revenue jumped 43% in the six months to the end of August 2019 and pre-tax profit jumped 45%, while superior cash flow also left it with over £207 million of net cash. Plus, while ASOS has had to lower guidance over the past year, Boohoo has been raising it. Last week, Boohoo said revenue for the year to the end of February 2020 will be 40% to 42% ahead of the previous year, up from a previous forecast of 33%-38%. It also said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin should be between 10%-10.2%, instead of its previous 10% estimate. Boohoo has already provided an insight into the all-important trading period in the final months of 2019, which has set a high standard for ASOS to follow. Boohoo’s revenue grew 44% in the four months to the end of December, comprised of a 42% rise in the UK, 54% in the EU and 57% in the US. With ASOS still in recovery mode, it is unlikely the company will be able to match those figures when it releases its results later this week that cover the same period. Boohoo’s next scheduled update will see it release its annual results for the year to the end of February 2020 on 22 April 2020. How to trade the ASOS results There are 13 brokers covering ASOS and, overall, the stock boasts an average rating of Hold (as of 20 January 2020). Still, the average target price sits at £35.61, suggesting there is 15% upside to the current share price of £30.90. Boohoo has a stronger average broker rating (Buy). Although, with an average target price of £34.62, brokers also believe there is less potential upside to the stock. Broker ratings ........................ASOS................Boohoo Strong Buy................2...................7 Buy..........................10..................5 Hold........................10...................4 Sell...........................4...................2 Strong Sell...............1...................0 Average target price...£35.61...............£34.62 Current price (20 January 2020).....£30.90...£32.70 Potential upside........15%..................5.90% ASOS vs Boohoo: which one should you buy? Investors should be bullish about both stocks for different reasons. ASOS has had a tough year but looks to have overcome most of its problems, leaving it with a strong foundation to build upon. Shares remain subdued, but this means there is more upside to ASOS shares that should be set to recover in 2020, even it fails to match the pace of growth being delivered by Boohoo. Boohoo is a safer bet for investors, but one that could offer limited upside compared to ASOS if it delivers a turnaround. It has been smoother sailing for Boohoo and its track record is sound, which should install greater confidence in anyone looking for a longer-term investment. Plus, it also has a slew of newer brands it has acquired - Coast, Karen Millen and MissPap - that give it further growth avenues going forward. Brokers still see room for the share price to head higher even after hitting a record high, albeit not by that much. There is a third option for investors keen to gain exposure to the fashion retail segment. JD Sports, the athleisure and footwear retailer, has over 2400 stores worldwide and it has consistently bucked the downward trend hitting the wider market. Its revenue is growing faster than even that of Boohoo, and the company is more profitable at the bottom line. Plus, it pays dividends too, which is always welcomed by investors. ------------------------------ See the difference of Asos too Boohoo.Although 3 months old still valid.
28/1/2020
22:12
doc60: I don't short Christh, I don't trade, I just tend to invest for the long term. I've been in BOO since it was 46p, I've top sliced a few times as it was becoming over weight in my portfolio. I'm sure the BOO share price will go higher still. I just find your constant short term price predictions overly optimistic and unrealistic and rather tiresome, sorry.
28/1/2020
11:33
christh: RECENT REPORT from Regency Capital Boohoo (BOO) AIM’s fast fashion growth super story The buzz around a fast-growing business is unmistakable. From the positioning of the brand to the strategic decisions of management, certain companies hit a sweet spot where global growth becomes seemingly self-fulfilling and online fashion house Boohoo (BOO) is a perfect example… While established high street fashion names like Topshop, New Look and Monsoon are struggling to survive, business at Boohoo is booming. It has enjoyed huge growth by targeting young shoppers who prefer to buy clothes on their phone and take their fashion advice from Instagram influencers rather than traditional magazine editorials. Selling glamorous clothing and beauty products for as little as £1, the company which owns the popular labels Miss Pap,Nasty Gal, PrettyLittleThing and BoohooMan is growing at breakneck speed, outstripping its own forecasts and overtaking its biggest rival Asos. Second Mover Advantage As with many new market sectors, a lot can be learned from the trail blazing first movers and it is often the second movers which step in and clean up. This certainly seems to be the case with online fashion… In 2001, ASOS were the first to prove that you could successfully bypass traditional retailers and sell directly to your target market. Five years later, Boohoo founders Mahmud Kamani a Manchester businessman working for his family’s textile business, and Carol Kane, a senior designer at the Kamani family’s company Pinstripe, took the ASOS model and supercharged it, making it hyper-responsive to the fast-changing demands of social media driven fashion trends. Boohoo’s model can move significantly faster than ASOS. Around half of Boohoo’s products are manufactured in the UK,and Boohoo owns many of its suppliers. Where most brands work to a lead time of around 6-9 months, Boohoo’s brands can reportedly release a new line of clothing – from design to sale – within two weeks! In comparison, ASOS aggregates almost 900 brands, so if Nike takes four months to respond to the latest shoe trend, so does ASOS. Under the influence Along with its super-fast lead times, Boohoo have been incredibly adept and harnessing the god-like power social media ‘influencers’ have over their millennial followers. While most high street retail chains were focusing on broad-based marketing campaigns, Boohoo were building an army of Instagram influencers who have been peppering the market with highly targeted content. And with the success of reality TV shows like Love Island, Boohoo have a ready-made supply chain of influencers just waiting to join their ranks. Bohoo (BOO) AIM’s fast fashion growth super story Bohoo’s use of influencer partnerships is really paying off: last year, Boohoo saw a 9% increase in the number of active customers who had shopped with them in the last 12 months, engaging seven million 16-30 year-olds and keeping them shopping. They’ve hit almost three million likes on Facebook, more than six million on Instagram and have delivered an average compound annual sales growth rate 50.8% over the last five years. BOO Breaks £1 Billion Sales Barrier Management have made a series of strategic acquisitions during the last two years which have put Boohoo on a global growth trajectory. In 2017, Boohoo acquired US-based Nasty Gal for £15.6m and this purchase is proving wildly successful… Revenue at Nasty Gal was up 148% to £43.9m in the six months to 31 August – the largest increase among Boohoo’s brands. The number of active customers more than doubled, rising 112% to 1.5 million, and Nasty Gal was described as “gathering momentum across all markets” in Boohoo’s recent half-year results. This year has seen Boohoo take ownership of Manchester-based MissPap and the online operations of British high-street brands Karen Millen and Coast. The purchase of Karen Millen and Coast is aimed at bringing in an older demographic that may be willing to spend more. The integration of these purchases completed last month and should Boohoo manage to tap into this more lucrative end of the fast fashion market it could lead to a significant re-rating in their share price. The group as a whole broke £1bn in sales over the past 12 months with all core brands delivering double or triple-digit growth in sales and customer numbers. UK sales jumped 37%, while international sales surged 64% – with management upping their full-year forecasts in September Gap and go The September trading update saw Boohoo’s share price gap significantly higher. Large ‘break-away price gaps’ of this nature create a burst of bullish momentum which continue to reverberate through the share price for several months. They also create two layers of horizontal price support, one at the top of the gap and another at the bottom. Boohoo’s price action following the gap has seen the shares tread water and consolidate in a tight range, just below all-time highs. This high and tight consolidation pattern is statistically weighted in favour of a breakout in the direction of the prevailing trend. SUMMARY With this in mind, buying Bohoo shares at this level could be a good way to optimise entry and achieve maximum risk/reward.
28/1/2020
11:17
christh: Boohoo (BOO) AIM’s fast fashion growth super story The buzz around a fast-growing business is unmistakable. From the positioning of the brand to the strategic decisions of management, certain companies hit a sweet spot where global growth becomes seemingly self-fulfilling and online fashion house Boohoo (BOO) is a perfect example… While established high street fashion names like Topshop, New Look and Monsoon are struggling to survive, business at Boohoo is booming. It has enjoyed huge growth by targeting young shoppers who prefer to buy clothes on their phone and take their fashion advice from Instagram influencers rather than traditional magazine editorials. Selling glamorous clothing and beauty products for as little as £1, the company which owns the popular labels Miss Pap,Nasty Gal, PrettyLittleThing and BoohooMan is growing at breakneck speed, outstripping its own forecasts and overtaking its biggest rival Asos. Second Mover Advantage As with many new market sectors, a lot can be learned from the trail blazing first movers and it is often the second movers which step in and clean up. This certainly seems to be the case with online fashion… In 2001, ASOS were the first to prove that you could successfully bypass traditional retailers and sell directly to your target market. Five years later, Boohoo founders Mahmud Kamani a Manchester businessman working for his family’s textile business, and Carol Kane, a senior designer at the Kamani family’s company Pinstripe, took the ASOS model and supercharged it, making it hyper-responsive to the fast-changing demands of social media driven fashion trends. Boohoo’s model can move significantly faster than ASOS. Around half of Boohoo’s products are manufactured in the UK,and Boohoo owns many of its suppliers. Where most brands work to a lead time of around 6-9 months, Boohoo’s brands can reportedly release a new line of clothing – from design to sale – within two weeks! In comparison, ASOS aggregates almost 900 brands, so if Nike takes four months to respond to the latest shoe trend, so does ASOS. Under the influence Along with its super-fast lead times, Boohoo have been incredibly adept and harnessing the god-like power social media ‘influencers’ have over their millennial followers. While most high street retail chains were focusing on broad-based marketing campaigns, Boohoo were building an army of Instagram influencers who have been peppering the market with highly targeted content. And with the success of reality TV shows like Love Island, Boohoo have a ready-made supply chain of influencers just waiting to join their ranks. Bohoo (BOO) AIM’s fast fashion growth super story Bohoo’s use of influencer partnerships is really paying off: last year, Boohoo saw a 9% increase in the number of active customers who had shopped with them in the last 12 months, engaging seven million 16-30 year-olds and keeping them shopping. They’ve hit almost three million likes on Facebook, more than six million on Instagram and have delivered an average compound annual sales growth rate 50.8% over the last five years. BOO Breaks £1 Billion Sales Barrier Management have made a series of strategic acquisitions during the last two years which have put Boohoo on a global growth trajectory. In 2017, Boohoo acquired US-based Nasty Gal for £15.6m and this purchase is proving wildly successful… Revenue at Nasty Gal was up 148% to £43.9m in the six months to 31 August – the largest increase among Boohoo’s brands. The number of active customers more than doubled, rising 112% to 1.5 million, and Nasty Gal was described as “gathering momentum across all markets” in Boohoo’s recent half-year results. This year has seen Boohoo take ownership of Manchester-based MissPap and the online operations of British high-street brands Karen Millen and Coast. The purchase of Karen Millen and Coast is aimed at bringing in an older demographic that may be willing to spend more. The integration of these purchases completed last month and should Boohoo manage to tap into this more lucrative end of the fast fashion market it could lead to a significant re-rating in their share price. The group as a whole broke £1bn in sales over the past 12 months with all core brands delivering double or triple-digit growth in sales and customer numbers. UK sales jumped 37%, while international sales surged 64% – with management upping their full-year forecasts in September Gap and go The September trading update saw Boohoo’s share price gap significantly higher. Large ‘break-away price gaps’ of this nature create a burst of bullish momentum which continue to reverberate through the share price for several months. They also create two layers of horizontal price support, one at the top of the gap and another at the bottom. Boohoo’s price action following the gap has seen the shares tread water and consolidate in a tight range, just below all-time highs. This high and tight consolidation pattern is statistically weighted in favour of a breakout in the direction of the prevailing trend. With this in mind, buying Bohoo shares at this level could be a good way to optimise entry and achieve maximum risk/reward.
02/1/2020
16:47
guruofcanada: 2 months old article, but the situation is now even more risky for boo share On Wednesday, ASOS (LSE: ASC) reported a 68% crash in pre-tax profit and a 70% slump in earnings per share. Yet its share price climbed 20% on the day of the announcement. Welcome to the upside-down world of growth investing. For years, I’ve been warning readers against the dangers of buying into soaring stocks when they’re on super-high valuations as, time and time again, I’ve seen such growth stories inflate and then burst. ASOS has been a textbook example, with the shares soaring to almost £78 in March 2018, since when they’ve crashed back to current levels of around £30. The shares, incidentally, were on a P/E of 79 at their peak, based on that year’s eventual EPS figure. Worth it? How many shares have I seen that I’ve ever thought were worth such a high valuation? I really can’t think of a single one I’ve ever bought at anything close to that level. You might point out that ASOS’s current woes are down to unpredictable warehouse problems, with the company saying it had “underestimated the impacts of large scale operational change being executed on two continents simultaneously”; and that “with the benefit of hindsight, we were not adequately prepared for the additional complexities.” But yes, that’s exactly it. Every new company will experience unanticipated problems. That simple fact is possibly about the only reliably predictable thing we can say about growth stocks. Oh, and that when such problems crop up, the share price will be hammered. Bitten twice? In the case of ASOS, the problems were known and the crash happened long before its full-year results were out. But could the same happen to online fashion rival Boohoo (LSE: BOO) now? Well, Boohoo has the distinct advantage of not being a first mover and not testing untrodden ground — it’s often not the first movers in a new direction who have all the success. So Boohoo can, in theory at least, learn from the mistakes ASOS has made and endeavour not to make the same ones. But there are other mistakes. Boohoo is also performing exceptionally well this year too, with first-half revenue up 43% and adjusted EPS up 46%. Global expansion is going well, with international trade now accounting for 44% of total revenues. Sentiment is very much in the company’s favour and keeping its name trending on social media can only help draw attention to it as an investment proposition. Big valuation But the problem I see is that share price valuation, with the stock on a P/E of 52 based on full-year forecasts. If those predictions prove accurate, Boohoo would need to see earnings per share multiply 3.7-fold in the coming years for the P/E to drop to around the FTSE 100 average — and that’s only if the share price doesn’t rise any further. Now, that might well happen, and current brokers’ price targets for up to 350p (around 25% higher than current levels) might come good. But I think I’m seeing a lot of optimism already in the share price, and against that possible 25% upside I’m seeing no safety margin to offset the downside risk. And when something goes wrong, which it inevitably will (even if it’s not of the same order of magnitude as ASOS’s problems this year), I think we could see a share price crunch.
02/10/2019
11:30
christh: Boohoo shares: here’s why I think they can keep rising Edward Sheldon, CFA | Wednesday, 2nd October, 2019 Businessman leading a chart upwards When I last covered online fashion retailer Boohoo (LSE: BOO) in late August, its share price was 228p. At the time, I noted that a number of directors were loading up on shares themselves (which is generally a bullish signal) and I said that, in my view, the risk/reward proposition of the stock was “favourable.” Fast forward to today, and Boohoo shares trade at 270p, meaning they’ve surged around 18% in less than six weeks – a great result for investors. However, looking at the growth story, I believe that there could be more upside on the cards. Here’s why. Excellent half-year results --------------------------------- Since my last report on Boohoo, the group has issued a two excellent updates. First, in early September, the company announced that its performance had been ahead of expectations and that it was upgrading its full-year revenue growth guidance to 33%-38%. Then, last week, the company issued fantastic interim results. For the six months to 31 August, revenue jumped 43%, while adjusted diluted earnings per share climbed 46%. The company also advised that international revenues are now 44% of total revenues. These updates show that Boohoo has significant momentum at the moment, both in the UK and internationally. If it can keep generating this kind of revenue and profit growth, I think the share price is likely to continue rising. Strong social media game -------------------------------------------------- One reason that I believe Boohoo is enjoying so much success right now is that it has a very effective social media strategy. By getting social media ‘influencers’ such as Love Island 2019 runner-up Molly-Mae Hague – who has over 3m Instagram followers – to promote its clothes, the group is able to generate a lot of interest among its target market. Looking at Instagram numbers, this strategy is working well. Currently, Boohoo has 6.1m followers, while its subsidiary Pretty Little Thing has 11.4m followers. By contrast, Next has 1.3m followers, while Superdry has 0.52m. Clearly, Boohoo has a strong online presence and this leads me to believe that the company should be able to continue to capture market share. Broker price targets --------------------------------------- Finally, I’ll point out that a number of brokers have price targets for Boohoo that are considerably higher than the current share price. For example, Jefferies has a price target of 325p, while Peel Hunt has a target of 350p – 30% above the current share price. Of the seven brokers covering the stock, six rate it as a ‘strong buy,’ which is a good sign. Additionally, brokers have been upgrading their earnings forecasts over the last month, which should also support the share price. I’d buy ----------------------------------- Now, I’ll point out that Boohoo shares aren’t cheap. With analysts forecasting earnings per share of 5.22p for the current financial year, they trade on a forward-looking P/E of 51. At that valuation, I wouldn’t want to be over-exposed to the stock. However, given the growth that the company is generating, I think a small allocation to Boohoo could be a good move. The company in question may have flown under your investment radar until now, but could help you to build a great income from your investments and retire early, pay off the mortgage, or simply enjoy a more abundant lifestyle. hTtps://www.fool.co.uk/investing/2019/10/02/boohoo-shares-heres-why-i-think-they-can-keep-rising/
Boohoo share price data is direct from the London Stock Exchange
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