Boohoo (LON: BOO) share price will be in focus this week as the company publishes its financial results which will provide more colour about its turnaround. The stock was trading at 34.45p on Monday, a few points above the year-to-date low of 32.02p.

Boohoo is expected to publish its trading statement on Wednesday this week. That is according to online platforms like Hargreaves Lansdown and TipRanks. Boohoo has not put the report in its financial calendar but in the past, it has published its interim results in May.

These results are important because Boohoo is currently implementing its turnaround strategy as its sales and profitability crashed. Boohoo’s revenue crashed by 11% in 2023 to £1.76 billion while its loss rose to £90.7 million from £7.8 million in 2022. Worse, its active customers fell by 10% to 18 million.

Therefore, the management believes that the company will start growing its sales and profitability this year. It attributed its profit decline to the drop in sales, and high freight, energy, labour, and logistics costs. 

There are mixed signals about Boohoo’s business ahead of its interim results. First, Asos, its biggest competitor, reported weak financial results recently. Its revenue dropped by 18% to £1.49 billion in the 26 weeks to March 31st. Its loss came in at £270 million during the quarter as the company reduced its costs.

The other challenge is that Boohoo and other fast fashion brands are facing strong competition from Chinese brands like Shein and Temu. These firms have low-cost supply chains and better balance sheets than Boohoo and Asos.

On the positive side, inflation in the UK has dropped in the past few months. The most recent data showed that the headline CPI fell to 3.2%. Analysts expect that the falling energy costs helped it drop to 2.0% in April.

The other positive is that visitors to its website has bounced back in the past few months. As shown below, data by SimilarWeb (NASDAQ: SMWB) shows that its visitors stood at 11.5 million in January and 12.5 million in March. Q1 visitors jumped by 11% to over 35.3 million. 

Boohoo website traffic

The other positive is that the company’s has some of the best brands in the UK. The most notable brands are companies like Debenhams, Coast, Nasty Gal, and Karen Millen. That explains why Mike Ashley has become one of the biggest shareholders in the company.

BOO chart by TradingView

Turning to the daily chart, we see that the BOO stock price has been in a tight range in the past few days. It was trading at 34.40p, where it has been in the past few days. That price has moved above the lower side of the symmetrical triangle pattern. It is also trading at the 50-day Exponential Moving Average (EMA).

The Average True Range (ATR) indicator has continued falling, signaling that the stock is not volatile. Therefore, with the stock nearing the symmetrical triangle pattern, there is a likelihood that it will show some volatility this week. The key support and resistance levels to watch will be at 30p and 37.54p.

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