Q2 2024 Boozt AB Earnings Call Transcript
Key Points
- Boozt AB (BOZTY) achieved an 11% revenue growth in Q2 2024, driven by a strong reception of the Spring/Summer collection and favorable weather conditions in the Nordics.
- The company attracted nearly 300,000 new customers in the quarter, indicating strong customer acquisition despite challenging market conditions.
- Active customer base increased significantly, with Boozt.com growing by 7% and Booztlet by 16%, showcasing effective customer engagement strategies.
- All product categories experienced growth, highlighting the strength of Boozt AB (BOZTY)'s Department Store model.
- The company maintained a solid cash position and announced a new share buyback program of up to SEK200 million, reflecting confidence in its financial stability.
- The gross margin was under pressure due to limited availability of campaign goods, impacting the ability to offer competitive deals.
- Fulfillment costs increased slightly due to the implementation of transfer cells, affecting the adjusted EBIT margin.
- The trading environment remains challenging with muted consumer sentiment, leading to a cautious outlook for the rest of the year.
- Revenue growth guidance for the year was narrowed to 7% to 11%, down from the previous range of 5% to 15%, indicating uncertainty in achieving higher growth.
- The promotional environment remains competitive, with consumers being price-sensitive, which could impact future profitability.
Good morning, everyone, and welcome to our Q2 call 2024.
Let's go to the first slide and it will likely not come as a surprise to you that the market remained challenging in the second quarter, but still we managed to increase revenue with 11% and maintain a very solid margin. The growth for the quarter was driven by a good reception of the Spring/Summer collection, which was certainly helped by the improvement in the weather that we saw in the Nordics during April.
The warm weather supported both Boozt.com and Booztlet, which both did well, growing revenue with 10% and 13% in the quarter. The growth was, to a large degree, driven by an increase in new customers and looking isolated at the quarter, almost 300,000 new customers bought from our two shops, which I believe speaks volumes of our ability to fare well under difficult circumstances. This also indicates, in our view, that even though consumers are holding back, when they buy, they buy online. It's very encouraging to see that our growth has been driven by an
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