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Boozt AB (SE:BOOZT)
:BOOZT
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Boozt AB
(BOOZT)
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Rating:68Neutral
Price Target:
kr96.00
▼(-14.67% Downside)
Action:DowngradedDate:02/08/26
The score is driven mainly by solid financial performance (notably strong 2025 cash flow and manageable leverage) and a constructive earnings outlook with significant buybacks, partially offset by gross-margin risk and historically volatile cash flow. Technical indicators are mixed with negative momentum signals, and valuation appears fair rather than compelling at a ~20 P/E with no dividend support shown.
Positive Factors
Cash generation
Record free cash flow (>SEK 1bn) and year-end net cash above SEK 1bn provide durable internal funding for execution. Strong FCF supports planned buybacks, inventory and Club Boozt relaunch funding, and cushions investment in tech and warehouses without relying on new debt.
Balance sheet health
Debt relative to equity has trended down and equity remains sizable, implying moderate leverage and healthy ROE. This structural balance-sheet strength preserves financial flexibility to fund capex, buybacks and strategic initiatives while reducing refinancing and solvency risk over the medium term.
Tech-driven operational efficiency
Wide AI deployment (search, visual search, forecasting, warehouse optimization, bots) is embedding recurring cost and productivity gains. These structural efficiency improvements can sustainably lower operating costs, improve forecasting and margins, and scale with revenue without proportional headcount growth.
Negative Factors
Gross-margin risk
FX and promotional intensity are durable margin headwinds: management cites SEK-driven revenue loss and promoted selling as major contributors to gross-margin decline. FX alone is estimated to shave ~0.6ppt off EBIT at current rates, making margin recovery sensitive to currency and promotional dynamics.
Cash-flow volatility
Despite a standout 2025, historical swings (negative FCF in 2021 and weak 2023–24) indicate working-capital and timing variability. Such volatility can impair the predictability of buybacks, investment pacing and debt servicing when exit taxes, HQ move costs and inventory rebuilds compress 2026 free cash flow.
Off-price channel growth trade-off
Using Booztlet to clear inventory and deliberately muting that channel improves gross margins but reduces near-term revenue momentum. Management expects Booztlet to be muted into H1 2026, making growth a strategic trade-off between margin rehabilitation and short-term top-line expansion.
Boozt AB (BOOZT) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr5.55B
Dividend YieldN/A
Average Volume (3M)115.95K
Price to Earnings (P/E)23.6
Beta (1Y)1.05
Revenue Growth1.54%
EPS Growth72.94%
CountrySE
Employees1,106
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)3.58
Shares Outstanding63,864,105
10 Day Avg. Volume99,121
30 Day Avg. Volume115,953
Financial Highlights & Ratios
PEG Ratio-2.82
Price to Book (P/B)2.55
Price to Sales (P/S)0.86
P/FCF Ratio7.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr113.00Price Target Upside0.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.71
Revenue Forecast (FY)kr8.59B
Boozt AB Business Overview & Revenue Model
Company DescriptionBoozt AB (publ), together with its subsidiaries, sells fashion, apparel, shoes, , accessories, and beauty products online. It operates through three segments: Boozt.com, Booztlet.com, and Other. The company operates Boozt.com, a multi-brand webstore with approximately 1000 brand partners for women, men, kids, sports and athleisure, beauty, and home products. The Booztlet.com operates as a channel for inventory clearance and retailing items that were not sold during their allotted timeframe in the webstores. It also provides clothing, shoes, accessories, sportswear, beauty products, and soft home products. In addition, the company operates physical retail stores under the Booztlet and Beauty by Boozt store names. The company operates in Sweden, Denmark, Norway, Finland, Germany, the United Kingdom, France, the Netherlands, Poland, and other European countries. Boozt AB (publ) was founded in 2007 and is headquartered in Malmö, Sweden.
How the Company Makes MoneyBoozt makes money primarily by selling goods online. Its core revenue stream is net merchandise sales generated when customers purchase products on its platforms (primarily Boozt.com for full-price retail and Booztlet.com for off-price/discounted sales). For these sales, Boozt records revenue at the selling price to the customer and earns gross profit as the spread between the retail price and the cost of goods sold, after accounting for markdowns, returns, and logistics/fulfillment costs.
A second revenue stream comes from services provided to brand partners, including marketing/advertising and other commercial services tied to running a multi-brand marketplace-style retail environment (e.g., promotional placements or campaigns). Where applicable, Boozt also earns income from logistics/fulfillment capabilities supporting its e-commerce operations (such as handling, warehousing, and distribution), though the extent to which these are separately disclosed in public reporting is null.
Key factors that influence earnings include the breadth and strength of brand relationships (to secure attractive assortments and purchasing terms), the mix between full-price and off-price sales (which affects margins), customer acquisition and retention efficiency (traffic, repeat buying, and loyalty), and operational scale in warehousing and delivery (which drives unit economics through fixed-cost absorption).
Boozt AB Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presents a predominantly constructive outlook: management highlighted tangible operational progress (record cash generation, improved margins, AI-driven efficiencies), concrete shareholder returns (large buybacks) and a clear offensive plan for 2026 (inventory rebuild, premium positioning, Club Boozt relaunch and AI initiatives). Key risks remain notable—material FX headwinds, gross-margin pressure from promotions, intentional short-term growth drag from Booztlet and near-term cash timing effects (exit tax, HQ move). Overall, the positives (strong cash, profitability gains, strategic clarity and technology-driven efficiency) appear to outweigh the manageable near-term negatives.Q4-2025 Updates
Positive Updates
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.
Negative Updates
Currency (FX) Headwinds
Significant FX drag due to SEK appreciation: management estimates more than SEK 160 million of lost revenue in 2025 from currency movements. Current FX rates imply ~2 percentage points negative impact on group revenue for 2026 and an estimated ~0.6 percentage point negative impact on EBIT margin.
Gross Margin Pressure from Promotions and FX
Gross margin under pressure from two external headwinds: SEK appreciation and a high promotional environment (price-sensitive consumption, intense Black Friday promotions). FX contributed to more than half of the gross margin decline.
Booztlet Deliberate Slowdown Impacting Near-Term Growth
Deliberate strategy to use Booztlet to clear excess inventory led to negative growth on Booztlet in H2 2025. Management expects Booztlet to be muted going into H1 2026, which will weigh on short-term group growth despite benefiting longer-term positioning and margins.
One-off Cash and Timing Effects Lowering 2026 Free Cash Flow
2026 free cash flow expected to be relatively moderate due to exit tax cash outflow (SEK 180 million total, SEK 112 million payable in 2026), double rent and moving costs for HQ relocation and inventory buildup to support the offensive buying plan.
Higher Operating Costs from Headquarters Move and CapEx
Move to Copenhagen will increase reported admin costs: salary conversion expected to increase costs by ~SEK 10–15 million and admin cost ratio could increase by ~0.5 percentage point. CapEx guidance for 2026 is SEK 165–185 million, including a SEK 40 million one-off warehouse insurance compliance spend.
Market Softness and Category Challenges
Overall market has been weak with deceleration over recent years; some markets like Finland were described as very weak. Beauty is a highly competitive/tough segment and management does not expect it to be a primary growth driver.
Company Guidance
Management guided 2026 to constant‑currency net revenue growth of 3–8% and an adjusted EBIT margin of 5.3–6.5% (guidance already factors in FX headwinds), with growth momentum expected to accelerate through the year toward double‑digit growth in H2 and a mid‑term ambition of 10% EBIT; they expect at least a 20bp margin improvement at the low end of the revenue range and further operational leverage on higher revenue. Management warned FX will shave more than ~2 percentage points off group revenue (EUR/DKK down ~4% vs 2025 average, ~50% of revenue) and roughly 0.6ppt off EBIT at current rates. CapEx is guided at SEK 165–185m (including a SEK 40m one‑off insurance compliance spend and SEK 40–50m warehouse investments), cash conversion is expected around ~70% (2025 included a record FCF year with >SEK 1bn in the quarter), free cash flow in 2026 will be relatively moderate due to timing items and moving costs, and an exit‑tax cash outflow of SEK 180m (SEK 112m payable in 2026) creates a multi‑year tax asset. Finally, they plan to return capital (SEK 300m in buybacks in 2026, >5% of market cap; combined buybacks ~SEK 750m for ’25–’26, ~14% of market cap), expect admin cost ratio to rise ~0.5pp (HQ move adds SEK 10–15m in salary conversion costs offset by lower social charges on LTIP) and will fund inventory, people and commercial initiatives (e.g., Club Boozt relaunch in April) to drive the plan.Boozt AB Financial Statement Overview
Summary
Overall fundamentals are solid: manageable leverage and healthy ROE, plus a strong 2025 rebound in operating cash flow and free cash flow conversion. Key risks are volatility in cash flow history and an unusually low 2025 gross margin that could indicate cost/mix or promotional pressure.Income Statement
Revenue growth has been solid over the period, with 2025 showing a sharp acceleration versus 2024. Profitability is generally positive with mid-single-digit operating and net margins, but margins have been somewhat inconsistent year-to-year. A notable red flag is 2025’s very low gross margin versus prior years, which suggests potential cost pressure, mix shift, or non-recurring effects that warrant scrutiny despite still-positive operating results.67
Positive
Balance Sheet
Leverage looks manageable: debt relative to equity has trended down from earlier years and remains moderate in 2025. Equity is sizable and supports the asset base, while returns on equity are consistently healthy (high-single to low-double digits), indicating reasonable capital efficiency. The main weakness is that equity dipped from 2024 to 2025 alongside lower net income, implying some recent pressure on retained earnings or balance sheet momentum.74
Positive
Cash Flow
Cash generation strengthened materially in 2025, with operating cash flow and free cash flow both surging and free cash flow nearly matching net income, which is a strong quality-of-earnings signal. However, cash flow has been volatile historically (including negative free cash flow in 2021 and very weak free cash flow in 2023–2024), suggesting working-capital swings or variable investment needs. Overall, the latest year is very strong, but consistency remains the key watch item.83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.29B | 8.24B | 7.75B | 6.74B | 5.81B |
| Gross Profit | 410.00M | 3.21B | 1.71B | 2.67B | 2.35B |
| EBITDA | 753.00M | 744.00M | 562.00M | 480.60M | 428.00M |
| Net Income | 301.00M | 342.00M | 233.00M | 186.05M | 188.70M |
Balance Sheet | |||||
| Total Assets | 5.70B | 6.29B | 5.96B | 5.99B | 5.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.10B | 1.17B | 1.46B | 1.76B | 1.55B |
| Total Debt | 778.00M | 878.00M | 965.00M | 1.11B | 842.60M |
| Total Liabilities | 2.91B | 3.31B | 3.24B | 3.49B | 2.76B |
| Stockholders Equity | 2.79B | 2.98B | 2.72B | 2.50B | 2.18B |
Cash Flow | |||||
| Free Cash Flow | 985.00M | 14.00M | 9.00M | 285.20M | -131.90M |
| Operating Cash Flow | 1.03B | 251.00M | 130.00M | 805.30M | 244.20M |
| Investing Cash Flow | -161.00M | -239.00M | -124.00M | -715.20M | -609.40M |
| Financing Cash Flow | -942.00M | -299.00M | -321.00M | 119.70M | 216.00M |
Boozt AB Technical Analysis
Negative
112.50
Price Trends
95.33
Negative
100.72
Negative
94.78
Negative
Market Momentum
-1.59
Negative
44.50
Neutral
55.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BOOZT, the sentiment is Negative. The current price of 112.5 is above the 20-day moving average (MA) of 88.83, above the 50-day MA of 95.33, and above the 200-day MA of 94.78, indicating a neutral trend. The MACD of -1.59 indicates Negative momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 55.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BOOZT.
Boozt AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | kr7.15B | 12.87 | 25.41% | 2.02% | 6.44% | 0.49% | |
70 Outperform | kr1.62B | 17.16 | 23.44% | 4.95% | 9.20% | 11.72% | |
68 Neutral | kr5.55B | 23.64 | ― | ― | 1.54% | 72.94% | |
64 Neutral | kr1.72B | 13.97 | 51.02% | ― | 12.45% | 118.98% | |
57 Neutral | kr1.33B | 23.88 | 10.85% | 1.87% | 11.38% | 16.09% | |
56 Neutral | kr776.92M | -12.12 | ― | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.