Boozt Q2 2025 slides: Revenue dips 3% as June shows recovery signs

Introduction & Market Context

Boozt AB (STO:BOOZT) presented its Q2 2025 results on August 15, revealing a 3% decline in reported revenue amid challenging Nordic market conditions, though the company highlighted significant performance improvement in June after a difficult April and May. Despite the revenue challenges, the fashion e-tailer reported a 29% increase in profit for the period and maintained its full-year guidance.

The company’s stock closed at SEK 89.75 on August 14, showing a modest 0.17% gain ahead of the results announcement. The current price remains well below its 52-week high of SEK 135.8, reflecting ongoing investor concerns following the guidance revision in Q1 2025.

Quarterly Performance Highlights

Boozt reported Q2 2025 net revenue of SEK 1,823 million, down 3% from SEK 1,872 million in the same period last year, though unchanged in local currency terms. The company’s performance varied significantly by segment, with Booztlet.com showing strong 14% growth (17% in local currency) while the main Boozt.com platform declined by 6% (-3% in local currency).

As shown in the following financial highlights table:

Despite the revenue decline, Boozt achieved a 29% increase in profit for the period, reaching SEK 76 million compared to SEK 59 million in Q2 2024. The adjusted EBIT margin contracted to 3.4% from 4.9% in the prior year, primarily due to a 2.7 percentage point decline in gross margin to 39.1%.

The company’s segment performance reveals contrasting trends between its main platform and outlet business:

Customer metrics remained strong despite market challenges, with customer satisfaction reaching best-in-class levels with a Trustpilot score of 4.5 (up from 4.4) and Net Promoter Score of 76 (up from 75). The company also reported increasing cross-category shopping, with 53% of customers now buying from more than one category, up from 51% a year earlier.

The following chart illustrates this trend in customer purchasing behavior:

Recovery Trend and Market Conditions

A key highlight from the presentation was the significant improvement in performance during June, following challenging conditions in April and May. The company attributed the earlier weakness to declining consumer confidence in the Nordic region, with June showing signs of slightly improved consumer sentiment.

The monthly revenue trend is illustrated in this chart:

According to the presentation, all categories except Women’s fashion returned to growth in June, suggesting a potential stabilization of market conditions heading into the second half of the year.

Strategic Initiatives

Boozt outlined several strategic initiatives aimed at fueling business growth despite the challenging market environment. These focus on three key areas: hiring, artificial intelligence implementation, and enhanced inspiration and curation.

The company has made new high-profile recruitments in buying and merchandising to strengthen its team and is proactively implementing AI across its value chain, including content generation, personalized recommendations, and AI assistants for various business functions. Additionally, Boozt is focusing on increasing customer loyalty through tailored content and product inspiration.

These strategic initiatives are outlined in the following slide:

Detailed Financial Analysis

Boozt’s cost structure showed mixed performance in Q2 2025. While the gross margin declined by 2.7 percentage points to 39.1%, the company achieved significant improvements in fulfillment and administrative cost ratios. Marketing costs increased as a percentage of revenue, reflecting the challenging market environment.

The detailed cost ratios are presented in this slide:

A notable bright spot in the financial results was the substantial improvement in free cash flow, which more than doubled to SEK 186 million from SEK 90 million in Q2 2024. This improvement came despite a 30% increase in net working capital to SEK 1,277 million, representing 15.5% of net revenue (LTM) compared to 12.2% a year earlier.

The cash development metrics are illustrated here:

Forward-Looking Statements

Boozt maintained its full-year 2025 guidance, which was revised downward in Q1. The company expects revenue growth of 0-6% (requiring 0-11% growth in H2 2025 to meet this target) and an adjusted EBIT margin of 4.5-5.5%. Free cash flow is now expected to be a minimum of SEK 500 million for the full year.

The company noted a 2% headwind on revenue growth and a 1 percentage point negative impact on EBIT margin due to currency effects. Additionally, Boozt has deferred expansion capital expenditure of SEK 500 million by 1-2 years, while maintaining its overall CAPEX guidance of SEK 150-170 million for 2025.

The full outlook and guidance is presented in this slide:

Boozt also reported that its SEK 200 million share buyback program is on track, with a process initiated to expand the program to SEK 300 million, signaling management’s confidence in the company’s long-term prospects despite near-term challenges.

Conclusion

Boozt’s Q2 2025 results reflect the challenging Nordic retail environment, with revenue pressure offset by improved profitability and strong cash flow generation. The company’s strategic initiatives and the June recovery trend suggest potential stabilization heading into the second half of the year, though management remains cautious as reflected in the unchanged guidance.

The divergent performance between Boozt.com and Booztlet.com highlights shifting consumer preferences in the current economic climate, with the outlet business benefiting from increased price sensitivity among shoppers. Investors will likely focus on whether the June recovery represents a sustainable trend or a temporary improvement as the company navigates the remainder of 2025.

Full presentation:

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