Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please 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 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 Source: Bloomberg

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

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and 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 only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support
Create account
Log in now
Log in now
Log in now

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.