September 26, 2021

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E-commerce company Boozt delivered somewhat weaker than expected — the stock fell

E-commerce company Boozt delivered somewhat weaker than expected — the stock fell

Swedish e-commerce company Boozt, on Friday morning, provided numbers for the second quarter and first half of the year. In a period when physical stores opened in large parts of the North region, there was tension over whether the company had been able to maintain the rapid growth it achieved during the Corona period.

A pre-tax profit of SEK 127 million was expected, up from a turnover of SEK 1.5 billion, according to estimates by five analysts, compiled by Bloomberg.

The result shows a pre-tax profit of SEK 77 million on a turnover of SEK 1.47 billion.

By comparison, the company reported a profit before tax of SEK 91 million on sales volume of SEK 1.23 billion in the same period last year. Thus, the volume of business increased by 20.2%.

The share of Boozt, which is listed on the Stockholm Stock Exchange, has fallen 10 percent since the start on Friday. A few minutes into trading, the stock was down about eight percent.

Boozt previously had a growth forecast of 25-30 percent for 2021. This is now raised to 27.5-32.5 percent, according to a half-year report.

We try to learn from other industries and strive to increase scale to achieve economies of scale, as well as to maintain our competitiveness and relevance, says Boozt entrepreneur and CEO Hermann Haraldsson in a mid-year report.

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Andresen family with a big win

From the exchange’s listing in 2017 through March 2020, Boozt’s stake has seen a rather woeful development, with an overall drop of 50 percent. In March 2020, virus fear and an unusual drop helped the stock drop, but rather than being devastating, the pandemic proved to be the turning point.

While a number of other apparel retailers have had to see declining growth, or even a decline, Boozt increased its sales from SEK 3.4 billion in 2019 to SEK 4.3 billion in 2020. In the first quarter, sales increased 48.5% About the same period last year.

The strong sales numbers have given investors renewed confidence in the company — since the low point in March of last year, the stake is up about 350 percent.

Johann H. Andersen and his family enjoy it.

Andresen family-owned investment firm Ferd contributed about NOK 200 million for a 5.8 percent stake in Boozt in connection with the listing in 2017. Since then, Ferd has gradually acquired itself to become the second-largest owner with 9.5 percent of the shares, up from 8.9 percent at the beginning of the year.

The family’s estimated earnings are just under a billion kroner.

After the stock exchange opened, including today’s fall, Bozet has a market capitalization of SEK 11.5 billion.

Big Brother Zalando

Boozt isn’t the only e-commerce company that could indicate high growth. E-commerce giant Zalando, which specializes in footwear and apparel, generated revenue of 2.7 billion euros in the second quarter, up from 2 billion euros in the same period last year. In the first half of the year, revenue was nearly seven billion euros, equivalent to 73 billion Norwegian kroner at today’s exchange rate.

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Operating profit (ebit) decreased slightly compared to the second quarter of last year and amounted to 186 million euros. This gives an operating margin of 6.8 per cent.

At the end of the second quarter, Zalando had 44.5 million active customers, an increase of 30 percent over the previous year.

The Berlin-based company has been listed on the Frankfurt Stock Exchange since 2014. When the pandemic occurred, the stock price fell by 30 percent, but since then, strong sales numbers and positive analyzes have contributed to a price increase of nearly 200 percent.

Zalando’s market capitalization is now around 23.1 billion euros, which is equivalent to 240 billion kroner at today’s exchange rate.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We want you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.