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May 30 2023, 07:10 IST/BST
Fast Fashion
Fashion players’ forecast update: 2023, the year of… cashflow?
- Companies : boohoo group plc | ASOS plc
DAVY VIEW
2020 was about growth, 2021/22 was about profitability – we had 2023 pinned as the ‘year of efficiency’, but perhaps cashflow is more important. On the face of it, both boohoo (BOO) and ASOS (ASC) had similar prints with revenues and margins shrinking. Cash was the differentiator – BOO can borrow against assets, ASC could not, but ASC raised £80m equity and refinanced and extended its debt; things are looking more comfortable now. We downgrade ASC’s numbers and tweak BOO’s.
