boohoo results and ITV update to mark mid-point of shorter week
The mid-point of the shortened post-Bank Holiday week will see final results from online fashion firm boohoo and a trading update from broadcaster ITV dominate the diary as investors eye more clarity on two companies that have faced opposing effects from the coronavirus pandemic.
Meanwhile, investors may also be looking at the insurance sector, with trading updates expected from both Direct Line and Hiscox.
boohoo hopes for tears of joy after bumper year
Wednesday will see final results from online fashion chain Boohoo Group PLC (LON:BOO), capping off what has been a boom year for the firm as the pandemic and lockdown forced shoppers to opt for its online offering as high street clothing outlets shuttered.
However, the firm has not had a perfectly smooth ride over the last 12 months after being forced to battle a supply chain scandal relating to working conditions at its factories in Leicester. While the issue appears not to have put off consumers, the company will likely be making a big deal out of its governance overhaul and efforts to make sure similar issues don’t crop up in the future.
With this in mind, investors are likely to keep an eye on any updates from boohoo’s ongoing supply chain review as well as what the UK’s third lockdown did for sales at the start of the year.
The outlook will also be crucial as lockdown eases and the firm faces the challenge of integrating the remnants of the collapsed Arcadia empire and as well as Debenham’s into its offering.
Investors turn over to ITV
A trading statement from ITV PLC (LON:ITV) on Wednesday may well be the only media release this month not to mention “Line of Duty”, the hit series from the BBC.
The focus will be on advertising growth, with Barclays estimating that over the whole year the broadcaster should see revenues rise by 8% from a year earlier.
In its results for 2020, ITV reported that total external revenue was down 16% at £2.7bn, with ITV Studios down 25% because of disruption in production and broadcast down 8%, with pre-tax profits shrinking by more than a third to £325mln.
Significant announcements for Wednesday May 5:
Trading announcements: ITV PLC (LON:ITV), Direct Line Insurance Group PLC (LON:DLG), Hiscox Ltd (LON:HSX), OSB Group PLC (LON:OSB), RHI Magnesita NV (LON:RHIM)
Finals: Boohoo Group PLC (LON:BOO)
Interims: Virgin Money UK PLC (LON:VMUK), Smiths News PLC (LON:SNWS), Cambria Automobiles PLC (LON:CAMB)
Economic data: US Services PMI