JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Boozt (ST:BOOZT) on Friday posted a 3% drop in second-quarter revenue to SEK 1.82 billion from SEK 1.87 billion a year earlier as softer consumer demand in the Nordics weighed on sales, though the company maintained its full-year guidance and expanded its share buyback program.
The Nordics-based company kept its 2025 outlook of 0-6% revenue growth and an adjusted EBIT margin of 4.5-5.5%.
Free cash flow for the year is expected at a minimum of SEK 500 million. The board approved steps to increase the share buyback program to SEK 300 million, up from SEK 200 million.
During the quarter, Boozt repurchased 1,099,000 shares for SEK 94 million, or 1.7% of capital.
Gross profit fell 9% to SEK 713 million, while the gross margin narrowed to 39.1% from 41.9%, reflecting clearance sales and a stronger krona.
Adjusted EBIT fell 32% to SEK 62 million, with the margin down to 3.4% from 4.9%. EBIT improved to SEK 105 million from SEK 79 million due to share-based payments, lifting profit for the period to SEK 76 million from SEK 59 million. Earnings per share before dilution rose to SEK 1.20 from SEK 0.90.
Free cash flow more than doubled to SEK 186 million from SEK 90 million, supported by inventory reductions, repayment of customs in Norway, and lower investments, partly offset by reduced accounts payable.
Net cash ended at SEK 75 million versus SEK 297 million last year, and cash and equivalents fell to SEK 376 million from SEK 725 million, reflecting buybacks and loan repayments.
Revenue in the Nordics declined 3% to SEK 1.65 billion, with Sweden up 4% and Denmark down 8%.
Revenue in the rest of Europe slipped 3% to SEK 175 million, as continued strength in the Baltics was offset by lower sales in Germany.
By platform, Boozt.com revenue fell 6% to SEK 1.43 billion, pressured by lower demand in women’s fashion. Booztlet.com rose 14% to SEK 395 million, driven by clearance activity. Average order values increased 2% year over year to SEK 934 on Boozt.com and SEK 933 on Booztlet.com.
Operational costs shifted as the fulfilment ratio improved to 10.5% from 11.4%, marketing costs rose to 11.5% from 10.8% due to offline campaigns, and adjusted administrative costs decreased to 9.7% from 11.2% after a workforce reduction in February.
The number of active customers over the past 12 months grew 19% on Booztlet.com to 1 million and remained stable at 2.7 million on Boozt.com. About 300,000 new customers shopped across the two platforms in the quarter.
During the period, Boozt cancelled 2,680,517 shares following the April annual meeting. In May, the company appointed Michael Bjergby as chief financial officer, effective September 1, succeeding Sandra Gadd.