Q2 2026 Boozt AB Earnings Call Transcript
Key Points
- Boozt AB (BOZTY) achieved 13% revenue growth in Q2 2026, with double-digit growth across all months and markets, indicating a successful return to its growth trajectory.
- The company's EBIT margin nearly doubled to 6.5%, driven by a 100 basis point improvement in gross margin to 40.1%, reflecting a strategic shift towards a premium, less promotional assortment.
- The new assortment strategy proved effective, with a 55% increase in styles offered on Boost.com leading to a corresponding 55% increase in styles sold, boosting customer engagement and conversion rates.
- AI initiatives are delivering tangible results, with the AI shopping assistant converting customers at 2.5 times the normal rate and increasing average order value by 8%, while AI-generated imagery reduces costs and accelerates content creation.
- The company's focus on its core B2C business, including closing the B2B gift shop initiative, has sharpened its strategic focus and is expected to drive higher quality earnings and long-term growth.
- Customer cohorts are showing renewed strength, with existing customers increasing their spending for the first time in years, and multi-category buyers growing by double digits, enhancing customer lifetime value and stickiness.
- Management confirmed its upgraded 2026 outlook and expanded its share buyback program to 300 million SEK, reflecting strong confidence in the business's momentum and cash generation capabilities.
- The company's full-year guidance of 7% to 11% growth implies a slowdown from the 13% Q2 growth rate, with management citing tougher comparisons and the unpredictability of the crucial Q4 season.
- Average order value (AOV) on Boost.com declined year-over-year in Q2, attributed to a higher proportion of new customers who initially purchase fewer items per basket, potentially pressuring near-term revenue per customer.
- The company's cash flow in Q2 was significantly lower year-over-year, impacted by one-off exit taxes related to the headquarters move and planned increases in inventory levels to support second-half growth.
- Admin and other cost ratios increased as planned due to the relocation to the new Copenhagen headquarters and investments in the commercial team, which could pressure margins if not offset by continued growth.
- The company incurred 11 million SEK in extraordinary adjustments related to closing the B2B gift shop initiative, including FTE terminations and asset write-downs, highlighting the costs of strategic refocusing.
- Management noted that the benefit from improved marketing cost ratios will be smaller in the second half, as the company plans to increase investment to capitalize on growth momentum, potentially limiting margin expansion.
- The company remains cautious about consumer sentiment, acknowledging that while there are signs of improvement, the growth is primarily driven by its own structural changes rather than a broad market recovery, leaving it exposed to consumer weakness.
Thank you and good morning to all and welcome to our Q2 2026 webcast. So let's just turn to the first slide, the agenda. So for today's presentation, we'll follow our usual agenda.
I'll take you through the highlights and the strategic developments.
And then Michael will walk you through the numbers in detail. So please move on to the next slide.
When we started 2026, our ambition was clear. We wanted to get back to double-digit growth.
We were quite confident that the initiatives we had put in place in 2025 were the right ones to position us strongly in the market and that they would bring us our growth momentum back.
So, this is why I'm very pleased that the results came through even faster than we expected. We grew 13% in the second quarter. And we almost doubled our EBIT margin to 6.5% and this was a broad-based performance with every major category and every market contributing.
Behind the quarter, there were three main drivers. The first is our new assortment strategy,
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