Boozt Q1 2025 slides: Revenue up 2%, outlook revised amid market headwinds

Introduction & Market Context

Boozt AB (STO:BOOZT) reported modest revenue growth in its Q1 2025 results presentation on April 25, as the Nordic fashion retailer continues to navigate challenging market conditions. The company’s shares closed at SEK 98.8 on April 24, down 0.61% ahead of the results announcement.

The presentation revealed a mixed performance across Boozt’s platforms, with its outlet business Booztlet.com showing strong growth while the main Boozt.com platform experienced a slight decline. Notably, the company has revised its full-year 2025 outlook downward, citing increased market uncertainty and unfavorable currency movements.

Quarterly Performance Highlights

Boozt reported Q1 2025 revenue of SEK 1,652 million, representing a 2% increase compared to the same period last year. Despite modest top-line growth, the company managed to improve profitability, with adjusted EBIT increasing 91% to SEK 38 million and adjusted EBIT margin rising to 2.3% from 1.2% in Q1 2024.

As shown in the following financial highlights table, profit for the period increased 77% to SEK 4 million, while gross margin decreased slightly to 38.0% from 38.9% in the prior year:

The company’s performance varied significantly between its two main platforms. Booztlet.com, the outlet business, demonstrated strong growth with revenue increasing 18% to SEK 328 million, while Boozt.com revenue declined 1% to SEK 1,324 million. However, profitability improved substantially on the main platform, with Boozt.com’s adjusted EBIT margin rising to 3.0% from 0.9% in Q1 2024.

The segment breakdown reveals the contrasting performance between the company’s platforms:

Boozt’s customer base continued to grow, reaching 3.8 million active customers, a 7% increase compared to Q1 2024. The company added approximately 270,000 new customers during the quarter, with particularly strong growth in the Baltics and on the Booztlet.com platform.

The following chart illustrates customer growth across different regions and platforms:

Strategic Initiatives

A key element of Boozt’s strategy is encouraging multi-category shopping, which helps drive customer loyalty and increase average order value. The company reported that 52% of Boozt.com customers purchased from more than one category, while 42% of Booztlet.com customers did the same.

Boozt has implemented an AI and technology-driven restructuring to enhance operational efficiency, including a 10% reduction in its workforce. This initiative is expected to provide approximately 0.3% uplift to the adjusted EBIT margin in 2025, helping to create a more resilient organization amid challenging market conditions.

The company’s cost control efforts are reflected in improved cost ratios, with fulfillment costs decreasing 0.8 percentage points and adjusted administrative costs decreasing 1.1 percentage points as a percentage of revenue:

Boozt completed its SEK 200 million share buyback program during the quarter, with SEK 134 million executed in Q1. The company’s board is preparing a new buyback program, reflecting confidence in its long-term prospects despite near-term challenges.

Forward-Looking Statements

In response to increased market uncertainty and unfavorable currency movements, Boozt has revised its outlook for 2025. The company now expects revenue growth of 0-6%, down from the previous guidance of 4-9%. Similarly, the adjusted EBIT margin forecast has been lowered to 4.5-5.5% from 5.8-6.5%.

The revised outlook is presented in the following table, which compares the updated guidance with previous forecasts and FY 2024 results:

Management cited several factors contributing to the revised outlook, including increased geopolitical unrest, heavy fluctuations in trading performance in April following increased trade tensions, and significant currency headwinds. The company estimates that currency effects will create approximately 3% revenue headwind and negatively impact the EBIT margin by around 1 percentage point.

Despite these challenges, Boozt maintains a solid cash position of SEK 391 million and continues to focus on cost control and operational efficiency. The company’s diverse product portfolio reduces its exposure to fashion market volatility, positioning it to weather the current market conditions and potentially benefit when consumer confidence returns.

Full presentation:

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