Boozt upwardly revises 2020 outlook due to strong Q2 despite COVID-19 pandemic.
NORDIC BUSINESS REPORT-June 24, 2020-Boozt upwardly revises 2020 outlook due to strong Q2 despite COVID-19 pandemic
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Boozt AB (STO:BOOZT), an e-commerce services company offering online clothes, shoes and accessories, on Tuesday provided an update to its 2020 outlook after a very strong Q2 2020, which outperformed the prior expectations of impact from COVID-19 pandemic and the positive trend in the return rate.
The company has now upwardly adjusted its 2020 outlook to 20% to 25% net revenue growth and an adjusted EBIT margin of 3% to 4%, as compared with the prior outlook of 10% to20% net revenue growth and an adjusted EBIT margin of 1% to 3%.
Net revenue growth for Q2 2020 is expected to be 35% to 40%, with an adjusted EBIT margin above 10%.
According to Boozt, during the last months it has welcomed more than 300,000 new Nordic customers, many shopping online for the first time. A key focus area has been to be a safe harbour for its brand partners to reach their Nordic target customer, as parts of their traditional distribution has fallen away due to the COVID-19 pandemic. The company has been very active in the market buying excess inventory to supply its many customers and support the brands during a difficult period.
The very positive development in April 2020 continued throughout the quarter as the re-opening of physical stores had limited effect on the strong momentum. New customer intake remained at a high level and existing customers increasingly returned to the platform during the quarter.
Reportedly, the strong momentum in the first part of Q2 continued throughout the quarter on both Boozt.com and Booztlet.com. Coupled with significantly lower returns realised in April 2020 and May 2020 driven by a higher share of men, sport, kids and beauty, the net revenue growth significantly exceeded the company's expectations.
Also, the adjusted EBIT margin was positively affected by a higher average order value, lower customer acquisition costs, lower fulfilment costs and general scale effects.
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|Publication:||Nordic Business Report|
|Date:||Jun 24, 2020|
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