Boozt Minor model adjustments
We have updated our estimates, owing to the slight miss on Boozt’s underlying full-year 2024 guidance. We do not consider these changes to be material, and we have not changed our HOLD recommendation. We have raised our target price to SEK120 (115) in light of the market’s revaluation of the shares.Slight miss on underlying full-year guidance. Boozt announced on 2 January that its preliminary 2024 net revenues were SEK8,215m (consensus SEK8,340m), corresponding to growth of 6% YOY (consensus 7.4%) and compared to the guidance of c7% growth YOY. The miss was due to Christmas sales falling shy of expectations, with the customer environment tougher than expected. The preliminary adj. EBIT margin for 2024 is expected to be 5.2% (consensus: 5.2%) and compares to the guidance of 5.2–5.4%. However, following the decision by the Norwegian Supreme Court in the case between Boozt and the Norwegian Tax Authorities, Boozt is currently cooperating with the Norwegian Customs Authority (Tolletaten) to correct the import duties that it was incorrectly obliged to pay in October 2022 through November 2024. The part of the expected correction relates to the financial year 2024 and amounts to cSEK48m. Taking this into account, the 2024 adj. EBIT would be 5.7%, and the reclaimed customs relating to earlier years would be included in the P&L as an adjustment and consequently included in the reported EBIT for 2024.
Estimate revisions. Following the new guidance, we have cut our underlying 2024–2025e EPS by c3–2%. Note that reported figures for 2024 are boosted by SEK48m in import duties for 2024 and SEK65m for import duties paid in 2022 and 2023 in Norway. Boozt is set to report its full Q4 report at 08:00 CET on 7 February.
Boozt AB is a Sweden-based company engaged in the provision of e-commerce solutions for the apparel industry. The Company offers customized e-commerce software and services that create e-commerce platforms, namely Boozt.com and its mono-brand stores, that are fully hosted and managed. Its software includes Propilot, a Web shop management administration system that enables changes to Web shop content; Podium, a front end module which ensures optimized user experience for users on mobile devices; Fastlane, a warehouse management system (WMS) that runs fulfillment processes in warehouses and integrates them with distribution partners; CS Eye, a customer overview service; and Brand Portal, a business intelligence (BI) service suite. Its services include the development of an initial strategy, building an online shop, fulfilling orders, handling returns, running ongoing campaigns and acquiring and retaining customers.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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