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Boozt.com, a Nordic Fashion Retail IPO success story

Boozt Financial Performance IPO Nordic Ecommerce On to Offline Share Price Venture Capital

Boozt.com, the PE- & industry-backed Swedish fashion etailer, listed on Nasdaq Nordic on 31 May 2017 at the higher end of its offer price of SEK 62 per share (offer range SEK 54-63).

The listing valued the company at about SEK 3.4bn (~£300m). The share traded at SEK 79 on June 7, 2017 representing a close to 30% lift in its offer price. However, only 2% up from its starting day price of SEK 77.50.

 

Boozt attempted to sell mono-brand stores and was successful with signing up both Ecco and Day Birger Mikkelsen (Ecco was also an investor). However, the company abandoned mono-brand stores after both brands failed to extend their deals beyond March 2017.

To counter lost revenue, Boozt opened a physical discount outlet outside Copenhagen in 2016 and in 2017 also opened a physical beauty store (despite not carrying this category on their website at the time) in the same area.

Revenue grew by an amazing 71% between 2015 and 2016 to reach SEK 1.4bn (~£125m). The company's tight gross margins would indicate a high level of discount to incentivise purchases and new customer acquisition especially as marketing spend was stable at about 15% of revenue in 2015 and 2016.

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