In This Article:
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Revenue Growth: 11% increase in Q2 2024.
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Adjusted EBIT Margin: 4.9%, resulting in adjusted EBIT of SEK92 million.
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Gross Margin: 41.9% in Q2, a decrease of 0.4 percentage points from last year.
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Net Revenue Growth (Boozt.com): 10% in Q2.
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Net Revenue Growth (Booztlet): 13% in Q2.
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Active Customers: Boozt.com increased by 8%, Booztlet by 17% in Q2.
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Average Order Value (Boozt.com): SEK916, a 3% increase from last year.
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Average Order Value (Booztlet): SEK919, a 5% increase from last year.
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Free Cash Flow: SEK90 million in Q2, improved from last year's negative SEK5 million.
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Cash Position: SEK725 million at the end of Q2.
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Net Working Capital: Increased to 12.2% of last 12 months' revenue.
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Inventory Level: SEK2.4 billion, with inventory as a percentage of revenue at 29.8%.
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Guidance for Revenue Growth: Revised to 7% to 11% for the full year.
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Guidance for Adjusted EBIT Margin: Revised to 5.2% to 5.7% for the full year.
Release Date: August 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Boozt AB (BOZTY) achieved an 11% revenue growth in Q2 2024, driven by a strong reception of the Spring/Summer collection and favorable weather conditions in the Nordics.
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The company attracted nearly 300,000 new customers in the quarter, indicating strong customer acquisition despite challenging market conditions.
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Active customer base increased significantly, with Boozt.com growing by 7% and Booztlet by 16%, showcasing effective customer engagement strategies.
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All product categories experienced growth, highlighting the strength of Boozt AB (BOZTY)'s Department Store model.
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The company maintained a solid cash position and announced a new share buyback program of up to SEK200 million, reflecting confidence in its financial stability.
Negative Points
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The gross margin was under pressure due to limited availability of campaign goods, impacting the ability to offer competitive deals.
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Fulfillment costs increased slightly due to the implementation of transfer cells, affecting the adjusted EBIT margin.
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The trading environment remains challenging with muted consumer sentiment, leading to a cautious outlook for the rest of the year.
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Revenue growth guidance for the year was narrowed to 7% to 11%, down from the previous range of 5% to 15%, indicating uncertainty in achieving higher growth.
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The promotional environment remains competitive, with consumers being price-sensitive, which could impact future profitability.
Q & A Highlights
Q: How does the limited availability of campaign goods impact Boozt's gross margin, and should we expect a similar effect in the future? A: Sandra Gadd, CFO, mentioned that while the limited availability of campaign goods does impact the gross margin, Boozt is mitigating this by stocking up on never-out-of-stock items. However, there is still a risk to the gross margin in a tough trading environment.