In This Article:
-
Topline Growth: 6.3% for the year.
-
Adjusted EBIT Margin: Increased to 5.7% from 5.2% last year.
-
Q4 Revenue Growth: 4% increase.
-
Booztlet Revenue Growth: 36% increase in Q4.
-
Adjusted EBIT Margin for Q4: 9.9%, up from 7.7% last year.
-
Share Buyback Program: SEK162 million in 2024, with a total program of SEK200 million.
-
Revenue Growth Expectation for 2025: 4% to 9% increase.
-
Adjusted EBIT Margin Expectation for 2025: 5.8% to 6.5%.
-
Gross Margin for Q4: 37.5%, unchanged from last year.
-
Net Cash Position: SEK795 million at the end of the quarter.
-
Free Cash Flow for Q4: SEK625 million.
-
Active Customers: Increased by 2% over the last 12 months.
-
Average Order Value: Increased by 2% to SEK1,011.
-
CapEx Expectation for 2025: SEK170 million to SEK200 million.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Boozt AB (BOZTY) achieved a topline growth of 6.3% for the year, despite challenging market conditions.
-
The adjusted EBIT margin increased to 5.7% from 5.2% last year, primarily due to the exemption from Norwegian customs.
-
Booztlet revenue increased by 36% in the fourth quarter, driven by price initiatives.
-
The company has successfully diversified its product categories, with more than 40% of sales now coming from non-fashion categories.
-
AI and machine learning are being utilized to improve efficiency and reduce costs across various operations, including customer service and inventory planning.
Negative Points
-
Overall revenue growth for the fourth quarter was only 4%, reflecting a challenging market environment.
-
Boozt.com revenue declined by 2% in the quarter, impacted by low consumer confidence.
-
The average order value on Booztlet decreased by 5% due to lower prices.
-
The company faced a small currency headwind during the year, affecting growth in constant currencies.
-
Despite an increase in active customers, the frequency of purchases has decreased as consumers remain hesitant to spend.
Q & A Highlights
Q: When you first announced your 10% margin target, you mentioned that winning the Norwegian tariffs case would accelerate reaching this target. However, the midpoint of your new margin guidance suggests a less than 1% improvement. Can you elaborate on this? A: Hermann Haraldsson, CEO: We are in a dynamic market and must respond to market conditions. While we aim for a 10% margin, the path is not linear. We are streamlining operations and adjusting to consumer sentiment, which impacts our progress.