We are excited to take our dedication to automation and development to the next level in cooperation with our partners since the beginning. In close cooperation we can now develop new technology in a controlled environment limiting the potential risk of adopting new and improved technology.
I have truly enjoyed my time at Boozt. It has been very rewarding on both a professional and personal level with numerous great experiences. I am proud of the company we have created, and I leave the company in a strong position. Personally, I will now pursue a role with a more commercial profile.
I am very happy with our strong execution in a challenging second quarter of the year. Boozt.com has continued its strong momentum with 21% net revenue growth and Booztlet.com has accelerated with a 156% net revenue growth in the quarter. Customer satisfaction remains very high and the unit economics are trending in line with expectations. Importantly, the average order value on Boozt.com was unchanged compared to last year, as the return rate reverted to the expected level after the elevated level experienced in the first quarter. Growth was driven by increased purchase frequency from existing customers as well as a higher new-customer-intake compared to last year.
Boozt Innovation Lab is a long-time dream come true. Namely the dream of utilizing the technology rapidly being introduced these days with our efficient and well-run technical platform in a fail-fast approach. The acquisition of Touchlogic has given us the opportunity to bootstrap the plan and has given us access to competences that will help us achieve this goal. I feel certain this is the right move to stay ahead in the tech race with our competitors.
As communicated after Q1 we had solid momentum in the first part of Q2, which we maintained throughout the quarter resulting in a growth of 44%. As always, our focus is on giving the best possible customer experience to increase the loyalty with our customers. The positive development in the key performance indicators such as customer satisfaction and true frequency shows that the building blocks for continued growth are in place.
The first quarter developed roughly in line with our expectations with net revenue growth of 29%. Customer satisfaction remains high as well as the True Frequency continues to rise, which combined with a continued new customer-intake at a high level, confirms our strong momentum.
Following the journey over the last years to become a leading fashion destination in the Nordics, aided by partnerships and an active role in creating experiences, we now do the same in the Sport category. Sport increasingly complements shopping for fashion with the casual trend gaining ground, similar to how we see shopping for beauty and fashion being complementary.
We recognise this is a journey that has only just began, but we are dedicated to doing our part to make the industry more sustainable.
After a difficult first part of the fourth quarter the year ended stronger than expected with December showing 51% growth and 90.000 new customers. The strong growth was supported by a normalization of weather leading to increased demand for in-season items, a strong pre-Christmas period due to our leading delivery proposition and a solid post-Christmas sale fueled by a high number of relevant campaign goods.
The quarter demonstrated our organisation’s ability to step up to the challenge and deliver when needed. The entire organisation worked relentlessly to deliver a strong end to the year in a difficult market environment. Despite aggressive price behaviour in the market, our healthy stock composition of relevant items for the Nordic consumer ensured a strong sales momentum with gross margin being less compromised than expected. Our strong delivery proposition meant that we could take more than our fair share of the market in the week leading up to Christmas, as more than 70% of our customers could order up until a few days before December 24 and still receive it on time. With all key performance indicators looking healthy, we enter 2019 in a better shape than ever.
With a healthy stock composition going into Black Friday, we had a strong offering of relevant items to both our existing customers and the more than 35.000 new customers we welcomed during Black Friday and the “Black Friday early access” on Thursday.
Growth for the quarter was in line with expectations, once again demonstrating the value of our flexible and agile business model in a challenging and competitive environment. I am also happy to see the successful launch of adidas which took place mid-September and it is fast becoming one of our top brands.
It is important for us to offer our customers the best, which is why we are very excited about presenting Kiehl’s and Urban Decay as new brands on Boozt.com. Both brands have a limited distribution in the Nordics, so becoming one of the few selected distributors strengthen our position as a leading online retailer in this region.
We have had a solid start to the year with growth in line with our expectations on the back of a strong first quarter of 2017. Although trading conditions were negatively impacted by the cold weather, the flexibility of our business model proved its worth as momentum continued but with a different sales mix than anticipated as the spring season only started towards the very end of the quarter.
Great milestones were achieved in 2017 with revenue of more than 2 billion SEK, more new customers than ever as well as increased number of orders from our loyal customers
We are very satisfied that we were able to accelerate our business during the fourth quarter to deliver a growth of 37.8% compared to the fourth quarter last year.
We are proud to be able to offer strong brands like adidas & Reebok to our customers. It will significantly strengthen our selection in the athleisure and sports category. We see a great interest and demand specifically for
As a listed company, our relationship with our investors is of great importance,” said Hermann Haraldsson, CEO of Boozt AB. “We are therefore pleased that Anders has agreed to join Boozt's management team. Anders comes with experience, insight and new ideas for how we can make our investor relations communication even better.
Guldbaggen pays tribute to the art of performance and movies, a craft that fills so many with joy and inspiration. Boozt is very honoured to be one of the main partners of this event and provide guests with an experience above the ordinary
We look forward to being part of Copenhagen Fashion Week together with the Nordic fashion brands which is our core business. Through strong cooperation with our brand partners, we believe our data and knowledge about consumer behaviour will contribute to new ideas and initiatives. It’s a great pleasure to participate and use our platform to raise awareness around both established and up-and-coming Nordic brands.
We are constantly seeking to improve our customer experience especially when it comes to speedy delivery. We are pleased to raise the bar in the Nordics when it comes to speedy delivery with this new initiative.
We are excited to launch our new flagship store in the heart of Copenhagen. Earlier this year, we opened our first Beauty by Boozt store at RO’s Torv in Roskilde and have since experimented and grown in addition to receiving a lot of positive feedback from both customers and partners.
“This is the fourth time we’ve beaten our revenue record since our last Black Friday in 2016, which demonstrates that we are seeing a strong and continued interest from customers wanting a curated Nordic offering of affordable luxury brands”
We are very pleased that we managed to accelerate the business again during the quarter delivering a growth of 45.7% compared to the third quarter last year. Based on these strong numbers we are raising our outlook for 2017, expecting net revenue growth to exceed 40%.
We are very pleased to be able to offer Polarn O. Pyret’s products to our customers. The exclusive cooperation with Polarn O. Pyret is an important complement to our brand portfolio and it will strengthen our kid’s category on Boozt,com.
“Mads is an expert within the field of buying and merchandising and he has built a strong and quite unique data driven approach to buying and merchandising within the company combining the soft skills of fashion buying with hard big-data-driven merchandising. Mads has been a key player in bringing us to where we are today, so it is an absolute pleasure to hand over to him the full responsibility of all buying and merchandising at Boozt.”
Many of our customers have been asking when we would be ready to sell cosmetics on-line as it is a natural fit in the ‘on-line-department-store-experience', They have been waiting for us to launch so we are happy to finally be able to launch this new important category. Cosmetics is a good fit for us and we hope our customers will add cosmetics items to their basket and thus, increase their basket size. It will also give us a good opportunity to be in a more frequent dialogue with our customers due to the re-purchase pattern in beauty and cosmetics. We launched our physical Beauty by Boozt store in Roskilde, Denmark, earlier this year and we are enthusiastic to launch the beauty concept on-line.”