Boohoo

[Clitheroekid]

It seems to me that Boohoo are effectively addressing the problems revealed by the Sunday Times etc, and that they are now heading in the right direction (perhaps needless to say I hold!)

This is interesting, and it would be great if other manufacturers were able to follow suit - https://www.theindustry.fashion/can-boo ... of-inditex

[Lootman]

My son's girlfriend buys most of her clothes from Boohoo. It's a clever model. The clothes can be designed and made very quickly and so are always "up to the minute" (not that I would know what that is). The items are incredibly cheap and are delivered the next day if ordered before 10 p.m.

They do not last very long, of course, but then high fashion items do not need to as they become out of date before they wear out. Six months is probably typical.

Aside from the sweatshop conditions in Leicester revealed last summer, they seem to be get a lot of things right. But mostly the pricing - the items are cheap enough that you can buy an item, wear it once and consider that you have had your money's worth.

All that said, fashion is not an area I regard as investible, although I have been tempted by Lululemon's shares a few times.

[simoan]

All that said, fashion is not an area I regard as investible, although I have been tempted by Lululemon's shares a few times.

There are actually some quality companies in fashion retail although I understand many will just write off the industry. Likewise, there are sectors I just choose to ignore.

Boohoo is one of my top five holdings with my original purchases back in the 25-40p days after reading a Telegraph article with Mahmud Kamani. It was clear he was incredibly switched on and had a high growth "test and repeat" business model. However, not long after the AIM listing they put a profit warning out which is pretty bad form.

FWIW I also hold Next (a fantastically managed company) and Burberry at the quality end which both have higher margins than BOO. I also used to hold Estee Lauder but sold far to soon! I thought it looked expensive when it went up to $150!

All the best, Si

[Shaker]

Anyone else following this stock? Share price fallen around 70% since the original post but the financials appear to be heading in the right direction?!

[Clitheroekid]

Yes, as the OP I'm following it - in much the same way that one might follow a funeral cortege!

This was emphatically not one of my best investments. I bought it having read many comments by Paul Scott and others on Stockopedia as to how wonderful it was and how it was PS's biggest holding.

Not that I in any way blame him. Nobody could have seen the sh*tstorm that hit them on multiple fronts last year. I just wish I'd sold before they hit this level.

Of course I'm the eternal optimist, hoping they may somehow claw their way back, but my fear is that the days of fast fashion are numbered, and now that I know much more about it than I did when I bought BOO I'm afraid I think that they should be numbered. The whole business model seems to be one of the most environmentally hostile that there is.

The ironic thing is that BOO have at least tried to mend their ways, and seem to be a much better company than they were, while the company that is now probably their biggest rival, Shein, being Chinese, have no ESG credentials at all yet somehow escape any media attention.

[Shaker]

Do you think it's worth getting in at 103p and holding for say, 3 years?

[vand]

Both BOO and ASC are interesting at these sort of prices imo. Just need to decide which one, though I'll probably just end up buying both. Both are mentioned in the book "Richer Wiser Happier" by William Green as stocks favoured by Zakaria and Sleep. Two growth stocks now on sale at value prices.

Their low margin business models definitely becomes harder in a more inflationary environment, but I think that the market has probably over-reacted to this.

[Shaker]

Just an update to the thread. Boohoo now trading at an even better price of 42.7p.

It's down just over 54% in 6 months!

[Clitheroekid]

Just an update to the thread. Boohoo now trading at an even better price of 42.7p.

Better for you maybe!