Boozt AB Q1 report, January 1 - March 31 2025
Financial performance
- Net revenue in Q1 2025 increased by 2% (or 3% in local currency) to SEK 1,652 million (SEK 1,614 million in Q1 2024). The fashion and lifestyle market in the Nordic regions remains challenging with customers being increasingly hesitant to spend. Growth was driven by Booztlet.com (18%), which continues to benefit from the price initiative started in Q3 2024. Revenue from Boozt.com was slightly down in the quarter (-1%).
- The customer base continued to expand, with active customers increasing by 7% across Boozt.com and Booztlet.com, reaching 3.8 million customers. This was supported by the continued solid momentum on Booztlet.com.
- Adjusted EBIT increased by 91% compared with Q1 2024 to SEK 38 million (20). The adjusted EBIT margin increased by 1.1 percentage points to 2.3% (1.2%). The improvement was primarily driven by a better fulfilment cost ratio following the implementation of transfer cells at the fulfilment centre in 2024, as well as the customs exemption secured in Norway last year.
- Cash flow for the quarter was SEK -780 million (-776), while free cash flow improved to SEK -619 million (-685). Cash flow in Q1 is typically low, largely due to increased net working capital as inventory is built in preparation for the spring/summer season.
- In Q1 2025, Boozt repurchased 1,097,500 shares for SEK 134 million, completing the current share buyback programme, which totalled SEK 198 million. Under the mandate granted at the AGM, the Board of Directors intends to launch a new share buyback programme within weeks, pending a formal resolution.
- The outlook for 2025 has been revised to reflect heightened market uncertainty and increased currency headwinds. Net revenue growth is now expected to be 0-6% (from 4-9%) and the adjusted EBIT margin is expected to be 4.5-5.5% (from 5.8-6.5%).
Business update
- In January, Boozt announced a strategic realignment, reducing around 10% of the company's permanent positions to reflect the increasing role of technology and AI across the value chain. The reorganisation was carried out during the quarter and resulted in severance costs of SEK 27 million. The reduction in the workforce is expected to have a positive net impact on the adjusted EBIT margin for 2025 of around 0.3 percentage points.
- In the quarter, Boozt announced plans to establish a new headquarters in Copenhagen to support its long-term growth ambitions. The location offers strong connectivity to both Denmark and Sweden, as well as access to a dynamic business environment and a highly skilled talent pool. The relocation is expected to be completed by Q1 2026.
- ESG: Boozt has initiated outreach to brand partners through the Fashion Leap for Climate program, actively supporting their decarbonization efforts and contributing to Boozt's science-based supplier engagement target.
- Boozt's CFO, Sandra Gadd, has announced her resignation after serving since 2019. To ensure a smooth transition period, she will remain available until after the company releases its Q2 report in August.
CEO comment
"During the quarter, we continued to strengthen our business, despite sales being increasingly challenged by the overall market sentiment. In January, we took a significant step toward reaping the benefits of AI and technology in our operations, positioning us well for the future. Additionally, we successfully encouraged more customers to embrace our department store offering - one of our key performance indicators. Overall, our actions have put us in a strong financial, operational, and cost position for when the market turns."
- Hermann Haraldsson, CEO & Co-founder
| SEK million unless otherwise indicated | Q1 2025 | Q1 2024 | Change | Rolling 12 months |
| Net revenue | 1,652 | 1,614 | 2% | 8,281 |
| Gross margin (%) | 38.0% | 38.9% | -0.9pp | 38.8% |
| Fulfilment cost ratio (%) | -10.8% | -11.6% | +0.8pp | -10.1% |
| Marketing cost ratio (%) | -10.1% | -10.0% | -0.0pp | -9.3% |
| Adjusted Admin and Other cost ratio (%) | -10.7% | -11.9% | +1.1pp | -3.3% |
| EBIT | 5 | -3 | 286% | 461 |
| EBIT margin (%) | 0.3% | -0.2% | +0.5pp | 5.6% |
| Adjusted EBIT | 38 | 20 | 91% | 491 |
| Adjusted EBIT margin (%) | 2.3% | 1.2% | +1.1pp | 5.9% |
| Profit for the period | 4 | 2 | 77% | 344 |
| Free cash flow | -619 | -685 | 10% | 78 |
Telephone conference / webcast
Boozt's Group CEO, Hermann Haraldsson, and Group CFO, Sandra Gadd, will present the Q1 report at a telephone conference/audiocast at 09.30 CET on Friday, April 25, 2025. The presentation will be held in English and will be followed by a Q&A session.
If you wish to participate via webcast please use this link.
If you wish to participate via teleconference please register on this link. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
For presentation material, please visit Boozt's website.
For additional information, please contact:
Magnus Thorstholm Jensen /Investor Relations / Phone: +45 30 50 44 02 / Email: matj@boozt.com
Ask Kirkeskov Riis / Media Relations / Phone: +45 53 62 54 60 / Email: askr@boozt.com
This information is information that Boozt is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-24 17:31 CEST.
