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1. Company Snapshot

1.a. Company Description

Boozt AB (publ), together with its subsidiaries, sells fashion, apparel, shoes, accessories, home, sports, and beauty products online.It operates through Boozt.com and Booztlet.com segment.The company operates Boozt.com, a multi-brand webstore for kids, sports beauty, and home products.


It also operates Booztlet.com, a channel for inventory clearance and retailing items that were not sold during their allotted timeframe.In addition, the company operates physical retail stores under the Booztlet and Beauty by Boozt store names.It operates in Sweden, Denmark, Norway, Finland, Germany, France, the Netherlands, Poland, Europe, and internationally.


Boozt AB (publ) was founded in 2007 and is headquartered in Malmö, Sweden.

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1.b. Last Insights on BOOZT

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1.c. Company Highlights

2. Boozt Group's Q3 2025: Strong Operational Performance and Cash Flow

Boozt Group's Q3 2025 report demonstrated a decent quarter with revenue growth improving to 3% organic or constant currency growth, driven by a recovery in women's fashion. The company's profitability improved significantly, with an upgraded EBIT margin guidance of 5-6% for 2025. Actual EPS came out at 0.4964, beating estimates of 0.4435. The strong operational performance was accompanied by solid free cash flow, with SEK 292 million generated in Q3, bringing the total to SEK 483 million over the last 12 months.

Publication Date: Nov -23

📋 Highlights
  • Upgraded EBIT Margin Guidance:: EBIT margin guidance raised to 5-6% for 2025, reflecting improved profitability.
  • Strong Free Cash Flow:: Q3 free cash flow reached SEK 292 million, with SEK 483 million generated over the last 12 months.
  • Increased Share Buyback Program:: Buyback program expanded to SEK 415 million, aiming to return SEK 800 million to shareholders in 3 years.
  • Inventory Reduction:: Inventory levels decreased by 5 percentage points compared to the same period last year.
  • Q4 Cash Generation Expectations:: Anticipated higher cash generation in Q4 2025 than Q4 2024, driven by operational improvements.

Operational Highlights

The company has made a strategic shift to focus on premium in-season sales on Boozt.com, creating a clear distinction between Boozt.com and Booztlet.com. The women's fashion category is gradually stabilizing, with a 2% decline in active customers shopping women's fashion on Boozt.com in Q3. The company is taking strategic steps to strengthen its women's category, including expanding teams and enhancing the customer experience. As the CFO mentioned, the company has "liberated buyers to take more risks and buy more inspirational products", which should help drive growth.

Cash Flow and Guidance

The company expects to generate more cash in Q4 2025 than in Q4 2024, reflecting continued operational improvements and strong management of working capital. The Board has increased the share buyback program from SEK 300 million to SEK 415 million, aiming to return SEK 800 million of capital to shareholders in 3 years. Revenue guidance for 2025 is 0-3% or 2-5% in constant currency growth, implying an improvement in Q4 driven by a cautious approach and a slight easing of comps.

Valuation

With a P/E Ratio of 17.63 and an EV/EBITDA of 8.65, the market appears to be pricing in a reasonable level of growth. Analysts estimate next year's revenue growth at 5.6%, which is slightly above the company's current guidance. The company's strong operational performance, improving profitability, and solid cash flow generation should support the stock's valuation. Additionally, the Free Cash Flow Yield of 3.24% is attractive, indicating a decent return for shareholders.

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.83%)

6. Segments

Boozt.com

Expected Growth: 9%

Boozt.com's 9% growth is driven by its strong online presence, efficient logistics, and strategic partnerships. The company's focus on fast fashion, competitive pricing, and user-friendly interface attract a loyal customer base. Additionally, its data-driven approach to inventory management and targeted marketing efforts contribute to its growth momentum.

Booztlet.com

Expected Growth: 8%

Booztlet.com's 8% growth is driven by increasing online shopping adoption in the Nordics, strong brand recognition, and effective marketing strategies. Additionally, the company's focus on fast and convenient delivery, user-friendly website and mobile app, and wide product offerings contribute to its growth. Furthermore, Boozt AB's strategic partnerships and investments in technology and logistics also support the segment's expansion.

7. Detailed Products

Fashion Products

Boozt AB (publ) offers a wide range of fashion products including clothing, shoes, accessories, and beauty products from various brands.

Home and Living Products

The company provides a variety of home and living products such as furniture, home decor, kitchenware, and textiles from well-known brands.

Sports and Outdoor Products

Boozt AB (publ) offers sports and outdoor products including sports equipment, outdoor gear, and athletic wear from popular brands.

Electronics Products

The company provides a range of electronics products including smartphones, laptops, tablets, and gaming consoles from leading brands.

Beauty and Wellness Products

Boozt AB (publ) offers a variety of beauty and wellness products including skincare, haircare, makeup, and fragrances from popular brands.

8. Boozt AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Boozt AB (publ) operates in the e-commerce industry, where substitutes are readily available. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Boozt AB (publ) operates in a highly competitive market, where customers have numerous options. This gives customers significant bargaining power, as they can easily switch to competitors if they are not satisfied with the company's offerings.

Bargaining Power Of Suppliers

Boozt AB (publ) has a diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's scale of operations gives it negotiating power when dealing with suppliers.

Threat Of New Entrants

While the e-commerce industry is relatively easy to enter, new entrants would need to invest heavily in marketing and infrastructure to compete with established players like Boozt AB (publ). This barrier to entry reduces the threat of new entrants.

Intensity Of Rivalry

The e-commerce industry is highly competitive, with many players competing for market share. Boozt AB (publ) faces intense competition from both domestic and international players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.18%
Debt Cost 4.72%
Equity Weight 73.82%
Equity Cost 14.49%
WACC 11.93%
Leverage 35.46%

11. Quality Control: Boozt AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
RVRC Holding

A-Score: 5.3/10

Value: 2.0

Growth: 8.6

Quality: 8.8

Yield: 3.1

Momentum: 5.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
On the Beach

A-Score: 4.9/10

Value: 4.4

Growth: 6.2

Quality: 7.6

Yield: 1.2

Momentum: 8.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Fnac Darty

A-Score: 4.6/10

Value: 7.6

Growth: 2.7

Quality: 1.6

Yield: 6.2

Momentum: 5.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
JM

A-Score: 4.2/10

Value: 5.9

Growth: 4.3

Quality: 4.1

Yield: 6.2

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Boozt

A-Score: 4.0/10

Value: 4.8

Growth: 8.3

Quality: 5.4

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
IVS Group

A-Score: 3.0/10

Value: 3.1

Growth: 2.9

Quality: 2.5

Yield: 1.2

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

72.25$

Current Price

72.25$

Potential

-0.00%

Expected Cash-Flows