| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4.10 | -95 |
| Intrinsic value (DCF) | 47.47 | -47 |
| Graham-Dodd Method | 5.40 | -94 |
| Graham Formula | 5.90 | -93 |
Boozt AB (publ) is a leading Nordic online fashion and beauty retailer, headquartered in Malmö, Sweden. Operating primarily through its multi-brand platform Boozt.com and clearance channel Booztlet.com, the company offers a curated selection of over 1,000 brands across women's, men's, kids', sports, athleisure, beauty, and home products. Boozt has expanded its presence across 10 European countries, leveraging a hybrid model that combines e-commerce with select physical retail stores under the Booztlet and Beauty by Boozt banners. Founded in 2007, Boozt has capitalized on the rapid digitalization of retail in Scandinavia, where it holds a strong market position. The company's vertically integrated logistics platform and data-driven personalization capabilities allow it to maintain high inventory turnover and customer retention rates. As consumer preferences shift toward sustainable and convenient shopping experiences, Boozt's tech-enabled platform positions it well in the competitive European fashion e-commerce sector.
Boozt presents an intriguing growth opportunity in the Nordic e-commerce space, with its revenue reaching SEK 8.24 billion in its latest fiscal year. The company's high beta of 2.04 indicates significant sensitivity to market movements, which may appeal to growth-oriented investors. Key strengths include its strong foothold in Scandinavia's digitally advanced markets, capital-light inventory model (with 1000+ brand partnerships), and positive operating cash flow of SEK 251 million. However, risks include intense competition from global players, reliance on European consumer spending (a cyclical sector), and net margins of just 4.1%. The lack of dividends reflects reinvestment priorities. Valuation appears reasonable at ~5x revenue, but investors should monitor the company's ability to maintain growth while improving profitability in a challenging macroeconomic environment.
Boozt occupies a unique position as a regional champion in Nordic fashion e-commerce, differentiating itself through localized curation and a hybrid marketplace/inventory model. Its competitive advantages include: 1) First-mover advantage in Scandinavia with deep understanding of regional preferences and logistics, 2) Proprietary tech stack enabling personalized recommendations (critical in fashion), and 3) Capital-efficient model balancing owned inventory (for key brands) with marketplace offerings. However, it faces pressure from multiple fronts: Global giants like Zalando offer broader selection, while fast-fashion specialists like H&M Group leverage vertical integration. Boozt's focus on premium/lifestyle brands provides some insulation from pure price competition. The company's recent expansion into beauty (via Beauty by Boozt) and physical retail touchpoints demonstrates strategic diversification. Key challenges include scaling beyond Nordic strongholds where brand recognition is lower, and maintaining margin discipline as marketing costs rise industry-wide. Its asset-light approach provides flexibility but may limit control over last-mile delivery experiences compared to vertically integrated rivals.