I got boohoo at a great price. Its amongst my best performing shares
Debenhams had hundreds of millions of online visitors last year, and generated around £400m in revenue. BooHoo will take that traffic and convert it much better. This also helps widen their customer age range with the in-house Debenhams brands they picked up in this deal. Plus they now have a very good base for beauty, and homeware. All in all it’s a good deal for BooHoo.
I’d personally rather they’d acquire something more on brand like top shop
reaching into a different target market i guess, as boohoo is for teenagers/ young adults.
At first I was thinking the same but the bigger opportunity is with 40+. The under 30 market is so competitive and they’ve done well but the opportunity is smaller
£55m for a business generating £400m of online sales last year seems a good buy full stop. Add in acquiring customer data in key segments which can be cross-pollinated through the Group and a route to quickly scale complementary markets such as Beauty and Home I think this is a solid move by Boohoo.
The valuation of boohoo demands that management keep growth pacey but so far they are executing the strategy very well. I’ll be holding for a while yet.
Boohoo is in talks to buy Burton,Wallis and Dorothy perkins. BOOHOO is trying to be the amazon of clothes shopping lol
Possible source for this, in case anyone is interested:
Sounds good to me
Like others have said, I think we’re on track to see it reach £4 again around April/May. But we could be set back by the debt of any brands it picks up, or any more bad press.
Either way, I expect to be holding for a few years yet, financials have stayed strong. The 40% dips have only provided huge buying opportunity IMO.
These transactions will be financed using the Group’s existing cash balance which was £386.9m on 31 December 2020. Debenhams will cost about £50m, and the Arcadia brands is around £25m. So even after these transactions they will still have a huge war chest.
Tempted to chip in, but I’m not really that knowledgeable on clothing at all. Hah.
Me neither. But when I think of companies who have done very well during this crises, continue to grow and seem to have a good grip on their finances, it’s encouraging. (Not advice!)
I bought a share.
Brave, I know! Tremble as it rises by 20p in value over the next year.
Actually bought it because the wife said to, as she wants to invest in them, so… If it goes wrong I’ll blame her.
Worth noting that they actually raised cash last year (200m) to be used for acquisitions.
In the news today.
Id say this development is a good thing in the long run.
Edit - another article
Thanks for sharing .
From the article:
Online fashion firm Boohoo has told its Leicester-based suppliers that they must bring all clothes-making work in-house, either buying out or cutting ties with sub-contractors.
The demand has caused concern among some suppliers about how they will pay to hire new workers and rent space.
Boohoo has given them a deadline of 5 March to stop using outside labour.
Only 1 months notice or have they known this for months?
1 months notice would not seem suitable, at least not in my view. This is an enormous change for their suppliers, surely they’d be needing at least a year to scale up and to terminate contractual relationships with their sub-contractors.
Something has to be done about the poor (and ILLEGAL) working conditions but hopefully suppliers that were working and subcontracting within the law (compliant, and being ethical) got at least 6 months notice otherwise it seems like a very drastic and harsh move that may even severely damage Boohoo’s relationship with suppliers and even cause production issues.
Agreed. It will dip and grow and so on, expecting £4.00 by May, and may retain shares for long term growth. Digital fashion retail will only increase. The suppliers issue, they want their stock closure to home, they are behind ASOS / Amazon and other retailers with delivery times, plus brexit. I believe there will be a fight also to buy Superdry in the future.
ASOS is on what? £45 per share?
Reckon BooHoo will get to those levels?
Anyway the news is a bit meh for me, since I don’t get paid for another two weeks. >_> Was hoping to get some more shares whilst the price is low, but no doubt it’ll be up and at them by the time I get anything ready. (and then they’ll dip when I buy it, you watch!)
There’s not much difference between ASOS and BooHoo’s market cap at the moment
The reason for this is, BooHoo has around 1,260 million outstanding shares, and ASOS has around 100 million outstanding shares.
Returning to your question, for BooHoo to get to ASOS’s price per share it would need go up about 13x. Which would put it’s market cap somewhere in the region of £56 billion, provided they don’t dilute shares getting there, or do stock splits etc.