Boozt (BOOZT) Q1 2025 earnings summary

Executive summary

• Revenue grew 2% year-over-year to SEK 1,652 million, driven by Booztlet.com’s 18% growth, while Boozt.com declined 1% amid challenging Nordic market conditions.

• Active customer base expanded 7% to 3.8 million, with 52% of Boozt.com and 42% of Booztlet.com customers purchasing from multiple categories.

• Adjusted EBIT margin improved to 2.3% from 1.2% last year, supported by fulfillment and distribution efficiencies, customs exemption in Norway, and AI-driven restructuring.

• Organization streamlined with a 10% workforce reduction, incurring SEK 27 million in severance costs, leveraging AI and technology for efficiency.

• Cash flow remained negative due to seasonal inventory build-up, with free cash flow at SEK -619 million and net cash position declining to SEK 8 million.

Financial highlights

• Net revenue reached SEK 1,652 million, up 2% year-over-year; gross profit stable at SEK 627 million; gross margin declined to 38.0% from 38.9% due to higher discounts on Booztlet.

• Adjusted EBIT margin rose to 2.3% from 1.2%; profit for the period increased 77% to SEK 4 million.

• Free cash flow improved to SEK -619 million from SEK -685 million; net cash fell to SEK 8 million.

• Earnings per share before dilution rose to SEK 0.07 (from 0.04); adjusted EPS after dilution increased 48% to SEK 0.44.

• Inventory as a percentage of revenue increased to 35.9% due to lower-than-expected autumn/winter sales.

Outlook and guidance

• 2025 revenue growth guidance revised to 0–6% (from 4–9%) and adjusted EBIT margin to 4.5–5.5% (from 5.8–6.5%) due to market uncertainty and currency headwinds.

• Strengthening SEK expected to reduce net revenue by ~3pp and adjusted EBIT margin by ~1pp if rates persist.

• CAPEX for 2025 forecasted at SEK 150–170 million, with SEK 65 million for capacity expansion.

• Market volatility and currency headwinds expected to persist, with improvement unlikely before H2.

• Full-year margin support expected from fulfilment automation and workforce realignment, partially offset by higher marketing for non-fashion categories.