Boozt back to double-digit growth as all segments accelerate growth
Despite being the biggest online retailer in the Nordics, fashion pure-player Boozt continues to grow strongly: +11%. This is an increase from the previous quarter and a year ago.
Growth was partly driven by slightly lower gross margins. However, the EBIT margin increased as a result of cost-cutting measures: both marketing and admin costs' share of revenue decreased. At the same time, fulfilment costs grew slightly faster than revenue as the company worked to increase automation.
Growth was driven by all segments. Geographically, the smaller markets of the Other Nordics (i.e., Finland and Iceland) and the Rest of Europe grew fastest, growing by 40+%.
Nordic Department Store strategy continues to pay off
According to the CEO Hermann Haraldsson, all of the company’s categories are growing. The more recent categories are growing by 20+% from the previous year. This broad growth meant that more than 100,000 new customers were buying from more than one category.
As customers were buying more items, the Average Order Value also continued to grow. This is also important as the company is able to diversify from the somewhat risky category of Women’s fashion with lots of returns and more volatile trends.
“The growth was, to a large degree, driven by an increase in new customers and looking isolated at the quarter, almost 300,000 new customers bought from our two shops, which I believe speaks volumes of our ability to fare well under difficult circumstances.”
“Looking across product categories, we had a really good quarter with growth in each and every category, again, underpinning the significance of our department store approach.
We’ve seen an increase in active customers shopping from more than one category of more than 100,000 customers compared with last year.”
