Boozt AB’s quarterly report, January 1 – March 31 2019
Net revenue growth of 29% (local currency 28%) in the first quarter with 25% growth in Boozt.com and 104% growth in Booztlet.com. Adjusted EBIT margin decreased 0.8 percentage point to -1.6%.
| SEK million unless otherwise indicated | Jan 1 – Mar 31, 2019 | Jan 1 – Mar 30, 2018 | Change |
| GROUP | |||
| Net revenue | 712.4 | 551.9 | 29.1% |
| Gross profit | 269.7 | 217.9 | 23.8% |
| EBIT | -21.0 | -6.4 | -229% |
| Adjusted EBIT | -11.3 | -4.1 | -175% |
| Result for the period | -20.2 | -11.2 | -79.5% |
| Earnings per share (SEK) | -0.35 | -0.20 | -77.2% |
| Earnings per share after dilution (SEK) | -0.35 | -0.20 | -77.2% |
| Cash flow for the period | -95.6 | -30.3 | -215% |
| Organic growth, % | 29.1% | 31.1% | -2.0 pp |
| Gross margin, % | 37.9% | 39.1% | -1.3 pp |
| EBIT margin, % | -2.9% | -1.2% | -1.8 pp |
| Adjusted EBIT margin, % | -1.6% | -0.7% | -0.8 pp |
CEO Hermann Haraldsson says: “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. The average order value was down driven by higher returns in the first quarter. However, gross average order value was unchanged compared to last year as lower pricing levels were offset by an increase in items per basket driven by strong growth in the newer categories. Over the last 12 months the average order value and the return rate has been at a stable level, but we will closely monitor the development of these in the coming period.”
“The gross margin remained under pressure from the general industry trading of excess stock from the Autumn Winter 18 season. This spill over effect from last year could only be partly offset by our increased level of campaign stock resulting in a gross margin 1.3%-points lower than last year. The operating cost ratios were negatively impacted be the lower average order value, partly offset by lower customer acquisition costs leading to SEK 7 million lower adjusted EBIT compared to last year, half of which was related to our physical beauty store in Copenhagen.”
“Our categories, especially Sport and Beauty, continue their strong growth, and I am very excited to see the development of our online outlet Booztlet.com. We are putting more resources into Booztlet.com, both personnel and marketing, and combined with the experience from building Boozt.com into a leading fashion destination we are starting to see the results. This is still early days
for Booztlet.com, but we believe the potential is huge. Our flagship physical beauty store continues to be a drag on profitability but is showing progress. Furthermore, we have taken the decision to close our smaller physical beauty store in Roskilde to further limit the losses of the Other segment going forward. Well through the challenging first months of this year we maintain our guidance of above 27% net revenue growth and an improved adjusted EBIT margin compared to 2018”
| Outlook for 2019* | Realised 2018 | Unchanged from guidance on 21 February 2019 |
| Net revenue growth | 38.1% | Above 27% |
| Adjusted EBIT margin | 2.3% | Improved from 2018 |
*The outlook assumes constant currencies from the time of this announcement on February 21 2019 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, May 15, 2019. 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:
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 & Corp. Comm. / 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. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on 15 May 2019.
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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