Boohoo to post soaring annual sales as investors await virus impact
Boohoo is set to unveil soaring sales for the past year, as investors await news of how the business has been affected by the coronavirus pandemic.
Analysts have backed the company to continue to outshine the wider market despite the outbreak, with its operations able to continue despite the Government-mandated lockdown, which has hammered high street rivals.
In its full-year trading update on Wednesday 22 April, Boohoo is expected to post a sales jump of around 42% to £1.22 billion for the year to February as shoppers continued to flock to its site.
The Manchester-based group has announced a series of profit upgrades over the past year as online-only retailers have gone from strength to strength, despite challenges in the wider retail sector.
Most recently, in January it said it expected to deliver revenue growth of between 40% and 42% for the year to February 2020, a significant increase on its previous range of between 33% and 38% growth.
It is now expected to reach the higher echelons of this updated range, while analysts have also predicted it will deliver adjusted earnings before tax and interest of £123.6 million after boosting profit margins.
But shareholders will now turn their focus to its performance for the current period, with analysts predicting that sales could dive temporarily.
Experts at Peel Hunt said they have “cut forecasts to factor in a 25% drop in sales this quarter”, with growth expected to be flat in the following three-month period.
Elsewhere, Bank of America analysts described Boohoo as the “best placed online retailer” to deal with coronavirus headwinds, highlighting that it has “higher margins” than its peers and an “agile supply chain”.
Boohoo said all of its warehouses are still operating after alterations to work within health and safety remits issued by the Government.
Rival ASOS said its group sales have slipped by 20% to 25% in the past three weeks after demand weakened in most markets. However it said that after an initial shock after the coronavirus hit a market, demand began to stabilise.
In its latest trading update in January, Boohoo reported a 44% jump in revenues to £473.7 million for the four months to 31 December after a strong festive period.