Innovaderma Share Discussion Threads

[kemche] 28/5/2020 09:51

SCSW this weekend - any chance post Harris departure?

[doc robinson] 28/5/2020 09:01

Ready for liftoff !

[shandypants2] 27/5/2020 15:35

also last April IDP spent a lot of effort pushing the Boots retail link so maybe DTC suffered this time last year (i know wonder serum was not on website for a period as Boots received priority).

So maybe the 63% is large due to DTC having a poor month this time last year.

However, do agree if DTC is up 10% Jan to April and 63% up in April alone, Jan to March must have been a bit down

[connor23] 27/5/2020 14:43

Hi Carlo. I think the assumption is Boots cannabilising the DTC sales now we are in store there (which we weren't same time last year).

[carlo sartori] 27/5/2020 14:24

Sorry about the prior message being a little mixed - I thought I had lost the first 2 paragraphs and did a quick one-paragraph post instead - but the Mid-message I thought I had lost also got posted.

I trust the point is clear though?

Carlo

[carlo sartori] 27/5/2020 14:21

"April was a record month for Skinny Tan DTC sales in both the UK and the US. Skinny Tan online sales in the UK were up 63% over the same month last year. The Skinny Tan UK customer base increased by 21% in the four months since December to more than 710,000, with revenue generated from online up 10% over the same period last year"

This statement would seem to suggest that DTC sales in the Jan-Mar period must have been back on the same period last year? We are 63% ahead of UK DTC sales in April 2019 (by far our biggest market) the US had a record month and yet we are only 10% ahead in the 4-month period (even though sales in April were 63% ahead in a significantly higher volu

Kemche, I am a little concerned about our Skinny Tan DTC YonY performance for the Jan-Mar 3-month period??
We had a record April performance in the US and in our biggest market by far we were 63% ahead April20 Vs April19, yet we are only 10% ahead in the total 4-month period - did we go backwards in the first 3 months of 2020 in our Skinny Tan DTC sales?

Carlo

[doc robinson] 26/5/2020 22:22

Good thing with all these DTC sales much higher profit margins compared to bricks and mortar!

[kemche] 26/5/2020 11:14

Joe and Kieran seem to be steady hands at the tiller. No wild projections - just execution. More power to their elbow I say.

This reads rather well:

"April was a record month for Skinny Tan DTC sales in both the UK and the US. Skinny Tan online sales in the UK were up 63% over the same month last year. The Skinny Tan UK customer base increased by 21% in the four months since December to more than 710,000, with revenue generated from online up 10% over the same period last year. The US DTC market has performed very strongly, particularly benefitting from the relaunch of a number of leading Skinny Tan SKU's. The US customer base is up 50% from just under 60,000 at the end of December to more than 88,000 at the end of April, with sales up 324% from the same period last year. Furthermore, our sales through online beauty retailers which are separate to the Company's DTC channel has performed exceptionally well."

[muzmanoz] 26/5/2020 11:05

That's because HC would be selling into it whilst doing interviews. Galling that he's still the one who has done best out of IDP.

[57eady eddie] 26/5/2020 10:58

Remember the days when HC was in charge. We would have had this positive update and the share price would have plummeted

[57eady eddie] 26/5/2020 10:18

Big shout out to Barry the fish for his insightful analysis. See post 22793

[kemche] 26/5/2020 09:47

To do the same as last year in the present environment is quite astonishing really. It is the US prospects that really whets the appetite. ST still leading the charge with Nuthing hopefully bringing up the rear with SD launch to come. Cannot ask for more all things considered.

I see the longs are manipulating these upwards. Grrr!

[connor23] 26/5/2020 08:10

I think that is spot on Adam re the operational leverage. I had anticipated this year being the one where we hit that critical revenue point where we started seeing a lot more dropping to the bottom line. Obvs Covid has had an impact on that but the DTC channel has proven the resilience of the business and hopefully we have taken mkt share during the retail shutdown.

[adamb1978] 26/5/2020 08:04

Very decent trading statement this morning - revenues at least flat on last year despite Covid-19 and a lot of the new products seemingly growing nicely or ready to be launched. The operating leverage in this means that, in my view, you could believe that they could grow to say 20p EPS over the medium term and therefore see a share price up several fold from here.

Really kicking myself that I didnt bull a full position over the last couple months

[connor23] 26/5/2020 08:01

This is really promising news re the US, the sort we looked for when we first launched stateside. I always saw the US as a potential game changer and finally it seems we have some traction!

[frrinvest] 26/5/2020 07:54

Strong update, shops opening will boost the business further. Progress in USA is very encouraging. Really pleased under the circumstances.

[tallprawn] 26/5/2020 07:41

The opportunity for a US retail deal is getting better and better by the day with the recent growth of the US DTC channel. Major retailers will be noticing an emerging brand being sold online in the category and will want a slice of the action soon once Covid short term challenges start to pass. This could be a major piece of news for next FY if the BOD can land an agreement.

[doc robinson] 26/5/2020 07:21

Top up time. Before the herd arrives . A very good update in the current market .

[tallprawn] 26/5/2020 07:18

Strong update - All the clues were there and this should put a solid floor in the price now.Slow and steady share price re-rate back to three figures will do nicely now.

[maqsud] 26/5/2020 07:14

Expect this to fly this morning ...ebitda of £2m near term , especially with news of sores reopening soon .

[bigfrocks] 26/5/2020 07:10

Absolutely fantastic ts. Well pleased with that! Under pinned now, great management in place, dtc flying! So pleased hc is long gone, onward and upward.

[boonboon] 19/5/2020 23:39

Possibly not, but I doubt it's a big seller. From memory superdrug and Boots together have between 70% and 80% of the total UK market. Doesn't leave much for the rest when it's spread out between multiple companies.I think our dtc sales will be up, but I think overall sales will be down. But we'll see in about 6 weeks.

[lord loads of lolly] 19/5/2020 23:32

boonboon - I take your point and you could be right about the market as a whole. Guess we’ll know for certain soon enough. But in the meantime, I wouldn’t be quite so quick to dismiss JL’s recent sales increase either. It’s not a product range they purely sell online BTW.

[boonboon] 19/5/2020 21:09

Maybe it's not a range they sell in store but only online as such the 40% growth could be down to the fact their overall online sales are growing. Or they're seeing growth as Boots and superdrug have stocking issues. I personally wouldn't normally associate fake tan with John Lewis, but presumably as I've pointed out already the more obvious ones Boots and Superdrug have struggled even with online sales.Let's say John Lewis were doing £1million in fake tan last year and Boots and superdrug £10 million each.John Lewis grows by 40% to £1.4 million.Boots sales decline by 30% to £7 million and superdrug sales decline by 20% to £8 million.Last year total sales were £21 million and this year total sales are £16.4million.So the total market has dropped by over 20% even though there's a good news story about a 40% rise.BTW these figures are arbitrary and made up to make a point. I don't have a clue what the actual situation is, just trying to point out that good news from a presumably lesser player doesn't mean it's good news across the whole market.Like I said I personally think we will have a drop in revenues this year, but will possibly see a bigger rise next year than we might otherwise have had. (due to tanning season being extended, less foreign holidays and a bigger customer list).