Boohoo (LON:BOO) I hold. 12.2% of portfolio.
I posted a comment back in October:
The broker note put out at the time of the results was very downbeat and certainly did not seem to reflect the likely outcome next February (full year results). Revenue to Sept 2020 was £816m and Zeus (house broker) is projecting £1609 for the FY. So a weaker second half (which includes Christmas, and hopefully a less "Covidy" enviroment. We will see but I will make a note to self as I don't want to re-write my memory when sales come in at £1609mil!
I also tweeted in October a quick thought on £BOO. “In Jan/Feb last year Boohoo (LON:BOO) had sales of £196m. Current FY Zeus estimates were for £1,609m for 2021. Yesterday Boohoo report sales of £1,477m. Assuming growth in Jan/Feb of 42%, then full year sales are more likely to come in at £1,755m. As we are in full lock down (no Primark for example) and Top Shop, Burton (while they have a online presence) are also in administration, it might be reasonable to assume > 42% growth in Jan/Feb Sales. Anyway I would be looking for nearer £1755m than £1609m.”
I think that they could report figures ahead of this (£1,755m revenue) tomorrow based on strong trading reported by Asos (LON:ASC) and from Next (LON:NXT) . Also figures in The Guardian (linked to in another post here) state that Boohoo will report “revenues in excess of £1,700m”. Not quite sure where they get this from unless there has been leakage but still it all points o revenue well in excess of £1,609m.
How the market react will I believe be based on the outlook statement and the comment on trading in March and April as we have come out of lockdown and the purchase of the Arcadia brands. That said while a nice pop in the share price would be welcome, I am indifferent to the share price in the short term as I still se Boo being significantly higher (2x to 3x) on a three year view.
I would be interested to know others expectations for tomorrow’s results.
Regards
Michael.
