CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Boohoo on course to unveil strong full-year sales

The online fashion retailer will unveil its full-year results on Wednesday, but how will the coronavirus pandemic impact its earnings?

Boohoo will unveil its full-year results on Wednesday, with the retailer expected to reveal soaring sales in its latest earnings update, despite the economic uncertainty created by the coronavirus pandemic.

The online fashion retailer is expected to record a 42% increase in group sales to £1.22 billion for the year ending on February. The company also is forecast to record adjusted earnings (before tax and interest) of £123.6 million.

If the company is able to meet analysts expectations in its full-year results on Wednesday, it will likely help its share price climb higher, with it proving to investors that consumers thirst for fashion has not diminished in these uncertain times.

Boohoo soldiers on despite Covid-19 lockdown

A key component to Boohoo’s resilience in the face of the coronavirus outbreak is its online-only presence, with the company’s operations able to continue despite the government-imposed lockdown which has hit high street rivals hard.

As an example, high street brand Next has seen its shares fall more than 30% since the start of the year amid a significant slump in sales, with it attempting to quell concerns by saying it can withstand a £1 billion reduction in revenues in the year to January 2021 without breaching the terms of its borrowing agreements.

Boohoo shares, however, are down just 7% year-to-date, with it telling investors in January that it hopes to deliver revenue growth of between 40% - 42% for the year to February 2020.

Covid-19 expected to hurt quarterly sales

But despite all the optimism surrounding Boohoo, analysts believe that its fourth quarter (Q4) sales could take a tumble as a result of the coronavirus pandemic.

Analysts at Peel Hunt admitted to cutting ‘forecasts to factor in a 25% drop in sales this quarter’, with growth expected to be flat in Q1 of the new financial year.

However, analysts at Peel Hunt still reiterated their ‘buy’ rating for the stock despite revising their outlook for the company’s sales performance in April ahead of its full-year results.

How to trade stocks with IG

Looking to trade Boohoo and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create an IG Trading Account or log in to your existing account

  • Enter ‘Boohoo’ in the search bar and select it

  • Choose your position size

  • Click on ‘buy’ or ‘sell’ in the deal ticket

  • Confirm the trade


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly skilled teams are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.