Boozt (BOOZT) Q2 2024 earnings summary

Executive summary

• Revenue grew 11% year-over-year in Q2 2024, driven by strong spring/summer collection sales and favorable weather in the Nordics, despite a challenging market.

• Nearly 300,000 new customers were added, with active customer growth of 11% year-over-year and increased cross-category purchases.

• Profitability remained solid with an adjusted EBIT margin of 4.9% (SEK 92 million), slightly down due to higher fulfillment costs from warehouse automation investments.

• Customer satisfaction remains high, with a Net Promoter Score of 75 and Trustpilot score of 4.4.

• Boozt initiated a SEK 200 million share buyback program and won a legal dispute with the Norwegian tax authority, though the decision may be appealed.

Financial highlights

• Net revenue reached SEK 1,873 million in Q2, up 11% year-over-year; H1 2024 net revenue grew 9% to SEK 3,487 million.

• Gross margin for Q2 was 41.9%, down 0.4 percentage points year-over-year; gross profit increased 10% to SEK 784 million.

• Adjusted EBIT margin for Q2 was 4.9%, down 0.2 points; reported EBIT margin was 4.2% (up 0.3pp); profit for the period declined 11% to SEK 59 million.

• Free cash flow improved to SEK 90 million in Q2 (from -SEK 5 million last year); net cash position at quarter end was SEK 297 million, down from SEK 430 million a year earlier.

• Rolling 12-month net revenue reached SEK 8,030 million.

Outlook and guidance

• Full-year 2024 revenue growth guidance narrowed to 7%-11% (from 5%-15%), reflecting challenging trading conditions and limited campaign goods.

• Adjusted EBIT margin guidance updated to 5.2%-5.7% (from 5.2%-6.0%), with the midpoint slightly lower.

• CAPEX guidance unchanged at SEK 150-250 million; currency effects assumed neutral.

• Management remains confident in long-term target of 10% adjusted EBIT margin within five years and ~10% Nordic market share by 2028.