Boozt AB (BOZTY) Q1 2025 Earnings Call Highlights: Navigating Growth Amid Market Challenges

In This Article:

  • Revenue Growth: Increased by 2% in the quarter, or 3% in local currency.

  • Booztlet.com Revenue: Increased by 18%.

  • Boozt.com Revenue: Declined by 1%, flat in local currency.

  • Adjusted EBIT Margin: Improved to 2.3% from 1.2% last year.

  • Gross Margin: 38%, down 0.9 percentage points from last year.

  • Active Customers: Reached 3.8 million, growing by 7%.

  • Cash Position: Solid, despite SEK134 million spent on share buybacks.

  • Free Cash Flow: Negative SEK619 million, improved from negative SEK685 million last year.

  • Net Cash Position: SEK8 million at the end of the quarter.

  • CapEx: SEK42 million, down from SEK97 million last year.

  • Workforce Reduction: 10% reduction in total workforce.

  • Guidance Revision: Revenue growth now expected between 0% to 6%; Adjusted EBIT margin projected between 4.5% and 5.5%.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Boozt AB (BOZTY) reported a 2% increase in revenue for Q1 2025, or 3% in local currency, driven primarily by strong performance from Booztlet.com with an 18% increase.

  • The company expanded its customer base by 7%, reaching 3.8 million active customers across both platforms, with Booztlet.com seeing a 22% increase in active customers.

  • Customer satisfaction remains high, with a Trustpilot score of 4.2 and a net promoter score of 74, indicating strong customer loyalty.

  • The adjusted EBIT margin improved to 2.3% from 1.2% in the previous year, driven by efficiency gains in fulfillment and distribution, and exemption from customs in Norway.

  • Boozt AB (BOZTY) completed a SEK200 billion share buyback program, maintaining a solid cash position and planning to launch a new buyback program at a comparable level.

Negative Points

  • Revenue from Boozt.com declined by 1% in the quarter, reflecting cautious consumer behavior and less aggressive pricing strategies.

  • The company revised its revenue growth guidance to 0% to 6%, down from the previous 4% to 9%, due to increased market uncertainty and unfavorable currency movements.

  • The adjusted EBIT margin guidance was lowered to 4.5% to 5.5%, from the initial 5.8% to 6.5%, impacted by currency fluctuations and market conditions.

  • Boozt AB (BOZTY) experienced a challenging operating environment with declining consumer confidence in the Nordics, influenced by geopolitical uncertainties.

  • Inventory levels were higher than desired, leading to expectations of more discounting in Q2 to clear excess stock, particularly in autumn and winter products.