Revenue Growth and Momentum
Net revenue grew 4% in constant currency in Q4 with a slight acceleration versus Q3. Boozt.com delivered stronger momentum (cited 7% local currency growth in Q4). Management expects acceleration through 2026 with guidance of 3%–8% constant currency growth for the year and a plan to return to double-digit growth by late 2026/2027.
Record Free Cash Flow and Strong Balance Sheet
Delivered record high free cash flow of over SEK 1 billion in the quarter; cash conversion for 2025 was far above 100% (management expects ~70% cash conversion over the cycle). Ended the year with a net cash position above SEK 1 billion.
Profitability and Margin Improvement
Underlying EBIT margin improved (management reported an almost 10% EBIT margin in Q4 context and a 0.9 percentage point improvement excluding a prior one-off). Company delivered a small full-year EBIT improvement despite FX headwinds and is guiding adjusted EBIT margin of 5.3%–6.5% for 2026 with a midterm target of 10%.
Shareholder Returns
Board completing prior SEK 800 million capital return and announcing additional buybacks: committed to SEK 300 million in 2026 and combined share buybacks for 2025–2026 expected to amount to ~SEK 750 million (cited as ~14% of market cap).
AI and Technology Integration Driving Efficiency
Significant AI initiatives: AI-powered search, visual search, AI-generated inspiration, virtual shopping assistant, and service bots handling ~35% of inquiries. Management attributes efficiency gains across forecasting, warehouse optimization, invoice handling and product categorization to technology, supporting a leaner organization and margin improvement.
Assortment Diversification and Customer Engagement
Non-fashion revenue on Boozt.com increased to 44% of revenue (from 42% prior year) with a goal toward 50%. 54% of Boozt.com customers buy from more than one category (up from 52%). Active customer base 2.8 million, +2% year-over-year. Multi-category shopper metrics improved (groups buying 2–6 categories rose between 6%–9%).
Strong Performance in Norway and Strategic Retail Positioning
Double-digit growth reported in Norway for Q4; management sees Norway as an underpenetrated market with potential to double sales in 3–5 years. Strategic shift to a more premium, mid-to-premium positioning on Boozt.com showing encouraging sell-through.