Q1 2025 Boozt AB Earnings Call Transcript
Key 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.
- 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.
Thank you and good morning to all and welcome to the presentation of our Q1 results. Let's turn to the first slide. The operating environment remained challenging the quarter with consumer confidence in the Nordics declining even further, most likely fueled by the increasingly uncertain geopolitical situation.
In terms of top line, we increased revenue with 2% in the quarter or 3% in local currency. Growth was primarily driven by Booztlet.com. It saw a strong 18% increase as we did during the second half of last year, we have used the Booztlet.com to clear inventory in the quarter. Our price initiatives on Booztlet help keeping our inventory fresh while contributing to building Booztlet value brand franchise.
Revenue from Boozt.com declined slightly in the quarter by 1% but remained flat in local currency. This, we believe reflects both the current cautious consumer environment as well as the fact that we deliberately are less aggressive on pricing on Boozt.com. While this impacts short term sales, we do this to
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