In This Article:
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Revenue Growth: 6% increase in Q3; 9% growth excluding FX impact.
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Adjusted EBIT Margin: 3.3%, down from 4.3% in Q3 last year.
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Cash Position: SEK641 million at the end of the quarter.
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Net Cash Position: SEK237 million, down SEK20 million from last year.
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Gross Margin: 38.6%, decreased by 1.2 percentage points from last year.
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Free Cash Flow: Negative SEK17 million, improved from negative SEK94 million last year.
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Active Customers: Increased by 12% over the last 12 months.
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Inventory as Percentage of Revenue: 43.2%, up from 42.7% last year.
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Share Buyback Program: Repurchased shares equal to almost 1.5% of share capital.
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Revenue from Boozt.com: Increased 5% or 8% in local currency.
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Revenue from Booztlet: Increased 13%, 15% in local currency.
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Club Boozt Members: Reached 1.7 million, over 50% of active customers are members.
Release Date: November 05, 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) reported a revenue growth of 6% in Q3 2024, with an underlying growth of 9% when excluding currency effects.
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The company saw a significant increase in active customers, with a 12% rise over the last 12 months, driven by strong performance in Germany, the Netherlands, and the Baltics.
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Customer satisfaction remains high, with a Net Promoter Score (NPS) of 73 and a Trustpilot score of 4.4, both above industry averages.
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Boozt AB (BOZTY) successfully won a legal case in Norway, which will save the company approximately SEK50 million annually in import duties.
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The company's loyalty program, Club Boozt, has reached 1.7 million members, with club members showing higher shopping frequency and average order value compared to non-members.
Negative Points
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The adjusted EBIT margin decreased to 3.3% from 4.3% in the same quarter last year, impacted by currency fluctuations and increased fulfillment costs.
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Boozt AB (BOZTY) faced challenges with consumer demand, particularly in August due to warm weather, affecting sales of autumn and winter collections.
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The company had to implement additional markdowns on Booztlet to clear older inventory, which negatively impacted margins.
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Currency fluctuations had a negative impact on the gross margin, decreasing it by 1.2 percentage points compared to last year.
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Despite revenue growth, the company reported a negative free cash flow of SEK17 million for the quarter, although this was an improvement from the previous year.
Q & A Highlights
Q: Could you comment on the impact of the Norwegian High Court case and your plans for reinvestment in growth initiatives? Also, will this affect your pricing strategy in Norway? A: Our prices in Norway have been competitive, and we have absorbed the customs costs, which amounted to around SEK50 million in 2023. We do not plan to reinvest this entire amount in Norway. Instead, a significant portion of the savings will improve our bottom line. We have been investing in Norway, anticipating either a change in customs policy or a favorable court ruling, which took longer than expected.