Boozt AB Interim Year Report, January 1 – September 30 2018
Net revenue growth of 37% (constant currency 31%) in the third quarter with 32% growth in Boozt.com and 197% growth in Booztlet.com. Adjusted EBIT margin decreased 1.2 percentage points to -4.0%. For the first nine months net revenue growth was 38% (constant currency 33%) and adjusted EBIT margin increased 0.6 percentage points to 0.3%. The full year outlook for net revenue growth is maintained, while the outlook for adjusted EBIT margin is adjusted to the range of 1.5% to 2% (previously slightly improved from 2.4%).
| SEK million | Jul 1 – Sep 30, 2018 |
Jul 1 – Sep 30, 2017 |
Change | Jan 1 – Sep 30, 2018 |
Jan 1 – Sep 30, 2017 |
Change |
| Net revenue | 625.0 | 454.9 | 37.4% | 1,891.5 | 1,372.2 | 37.8% |
| Gross profit | 228.9 | 177.8 | 28.7% | 754.4 | 583.6 | 27.7% |
| EBIT | -28.8 | -11.8 | 144% | -1.0 | -120.8 | -99.1% |
| Adjusted EBIT | -25.0 | -12.5 | 101% | 5.8 | -4.1 | n.m |
| Result for the period | -22.7 | -12.4 | 82.2% | -9.8 | -98.7 | -90.1% |
| Earnings per share (SEK) | -0.40 | -0.22 | 81.2% | -0.17 | -1.93 | -91.1% |
| Earnings per share after dilution (SEK) | -0.40 | -0.22 | 81.2% | -0.17 | -1.93 | -91.1% |
| Cash flow for the period | -156.3 | -186.8 | -16.3% | -64.8 | 143.0 | n.m. |
| Organic growth, % | 37.4% | 45.7% | -8.2 pp | 37.8% | 47.7% | -9.8% |
| Gross margin, % | 36.6% | 38.8% | -2.1 pp | 39.4% | 42.5% | -3.1 pp |
| EBIT margin, % | -4.6% | -2.6% | -2.0 pp | -0.1% | -8.8% | 8.7 pp |
| Adjusted EBIT-margin, % | -4.0% | -2.7% | -1.2 pp | 0.3% | -0.3% | 0.6 pp |
CEO Hermann Haraldsson says: “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. I would also like to highlight the performance of Booztlet, and the exciting evolution, allowing for a stronger push into the large potential of the off-price segment."
As expected, the market in Q3 was impacted by heavy promotional activities due to the unusual long and warm summer, which prevailed for most of the quarter. To ensure a healthy inventory situation our Q3 was also impacted by elevated promotional activities and consequently pressure on the gross margin. The negative development in EBIT for the quarter was driven by the lower gross margin and the larger than expected losses within the new offline Beauty by Boozt store in Copenhagen, only partly offset by leverage in the operational cost ratios.”
“Our full year guidance for net revenue growth of more than 36% is maintained as we enter the final quarter of the year. However, due the higher than expected losses in our new offline beauty store in Copenhagen and with the higher promotional activity we currently see in the market our adjusted EBIT margin is now expected to be in the range of 1.5% to 2%. With phase 2 of our Autostore expansion now completed and a very healthy stock composition we look forward to welcoming many more new customers as well as returning customers in connection with the big shopping events during Q4.”
| Outlook for 2018* | 21 November 2018 | 17 August 2018 |
| Net revenue growth | More than 36% | More than 36% |
| Adjusted EBIT margin | 1.5%-2% | Slightly improved from 2.4% |
*The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.
Telephone conference / audiocast
Boozt’s Group CEO, Hermann Haraldsson, and Group CFO, Allan Junge-Jensen, will present the interim year report at a telephone conference / audiocast at 09.30 CET on Wednesday, November 21, 2018. The presentation will be held in English and will be followed by a Q&A session. Questions can be asked via the telephone conference or in written form via the audiocast.
For presentation material or information about how to participate, please visit Boozt’s website.
For additional information, please contact:
Boozt AB (publ)
Hermann Haraldsson / Group CEO / Phone: +45 20 94 03 95 / Email: heha@boozt.com
Allan Junge-Jensen / Group CFO / Phone: +45 41 19 70 60 / Email: ajj@boozt.com
Anders Enevoldsen / Head of IR & Corporate Communications / Phone: +45 53 50 14 53 / Email: anen@boozt.com
This information is such information as Boozt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on 21 November 2018.
Boozt is a leading, fast-growing and profitable Nordic technology company selling fashion online. The Group generated net sales amounting to SEK 2.0 billion in 2017. Boozt offers its customers a curated and contemporary selection of fashion brands, relevant to a variety of lifestyles, mainly through its multi-brand webstore Boozt.com. The company is focused on using cutting-edge, in-house developed technology to curate the best possible customer experience. Besides Boozt.com, the company also runs the webstore Booztlet.com and retail stores Booztlet and Beauty by Boozt in Denmark. For more information, please visit booztfashion.com.
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