Boozt (BOOZT) Q2 2024 earnings summary

Executive summary

• Revenue grew 11% year-over-year in Q2 2024 to SEK 1,873 million, 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 customers up 11% 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.

• Profit for the period declined 11% to SEK 59 million, mainly due to higher taxes.

Financial highlights

• Net revenue growth was 11% in Q2 and 9% for H1 2024, both in local currencies.

• Gross margin for Q2 was 41.9%, down 0.4 percentage points year-over-year due to lower campaign stock.

• Adjusted EBIT margin for Q2 was 4.9%, down 0.2 points; first half margin was 3.2%, on par with last year.

• 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.

• Earnings per share before dilution was SEK 0.90 (Q2 2023: 1.00); after dilution SEK 0.85 (0.96).

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%), with the midpoint slightly lower.

• Management remains confident in long-term target of 10%+ adjusted EBIT margin within five years.

• CAPEX guidance unchanged at SEK 150-250 million.

• Market expected to remain challenging, with uncertainty around campaign goods availability.