Boozt AB

STO:BOOZT

Earnings Call Transcript 2021-Q1

[Operator]

Ladies and gentlemen, welcome to the Boozt Q1 Report 2021. [Operator Instructions] Today, I am pleased to present CEO, Hermann Haraldsson; and CFO, Sandra Gadd. Please begin your meeting.

[Hermann Haraldsson, Co]

Thank you, and good morning, all, and welcome to our Q1 2021 presentation. If we go to the first slide, the key highlights. I guess it's not so much new since we came out 3 weeks ago, but again highlight, we had a very strong growth throughout the quarter, both from new and existing customers. The net revenue growth was 48.5%. But in local currency, it was 54%. And, as you said, I'm slightly disappointed that we didn't pass the 50% mark, but then we have something new to strive for. And the adjusted EBIT margin was 6%, which was very good. And the EBIT margin was strong because we saw very high leverage on the top line growth where all our, kind of, cost control came in line, and we managed to -- basically to manage the high amount of volume without incurring extra costs. So that was quite nice. The home category is strong, has actually been performing ahead of expectations. We have many new exciting brands, have around 120 live. But we have agreements with around 260 brands and will have more than 200 brands live at the end of Q2. So definitely, the home category has been very good for us. And we're still very bullish in that category.We have a cash outflow in the quarter mainly to build the inventory. As you might remember, last year, at the same time, we actually were short on stock towards the end of Q2, and we want to make sure that we're not in that position. So we have been shipping a lot of inventory into the warehouse that we expect to ship out during the next 3 to 5 months. This is why our network capital is high and the cash flow is negative. We've also taken some very strong steps to transform into what we call kind of a true platform business, as we've talked about before. We want to be in control of a bigger part of the value chain, which is why we now have launched BooztPay across the entire Boozt universe, both Booztlet and Boozt.com as well as we have been ramping up and increasing the Boozt Media Partnership. And finally, current trading is strong. April was very strong, and we also see in the beginning of May being strong. So we see that, again, that the consumer demand is high. And this change of habits that has taken place over the last 12 to 15 months seems to stick. So that's good.And just to to mention again, we -- the 2021 outlook that was recently upgraded, we expect to grow now between 25% to 30% and have an adjusted EBIT margin above 5.5%. So we are still quite bullish in our market. If we go to the next slide, looking at the KPI highlights. Customer satisfaction, which I believe is probably the most important slide in the deck every time. Trustpilot is very stable around 4.6, while our NPS score is very high at 75 increased versus Q1 last year, which is very positive because this is a sign that the customer does buy from us, and they are very likely to come back at a later stage. So we are very positive on customer satisfaction. It's very pleasing to see that in spite of the fact that we had this very high growth in the quarter, we still managed to deliver on our promises towards the customers. If we go to the next slide on the order development. The number of orders, it was up 36%. But it's very pleasing to see that the average basket size is up versus last year, up now at SEK 815, up 3.7%. And this is due to the product mix. We can see that we've managed to put more items into the basket. That is always kind of the wish that for every e-commerce or every basic retailer to -- when you have the customers to get them to put more items in the basket, and we see that now that we're expanding into new categories, adding new brands, adding new categories that the consumers tend to put more items into the basket. So that's extremely encouraging and contributive effect to an increasing basket use economics.If we go to the next slide on the cohort development. We've seen that for the last 12 months, we have increased the active customer base by 33%. The number of orders per active customers is down. That is as expected due to the pandemic that we've seen that people in general have been buying less fashion, but we've seen more people buying fashion in stores. So the overall market has been down but there has been a huge spike in penetration, and this is also why it's very expected that the number of orders per active customers is down.And going forward, of course, once we go back to more normal levels, we expect that number to go up again. I think that's kind of the true frequency number indicates that direction because we see that if we strip the fair use customers, which we basically also call on unfair use customers, if we strip them out, and you can see that our true frequency actually is slightly upwards of stable, so which is quite good.If we go to the next slide on our fulfillment. It's fair to say that we are growing faster than expected. And as we mentioned, I believe at the last call, we were under-invested in our warehouse CapEx in 2020. We've been running a very tight ship in the warehouse close to max capacity, and we need to get ahead of the curve again. So which is why we are, again, investing in the warehouse. We need to accelerate our investments And which is why we've initiated basically 5 -- Phase 5 and 6 of Auto store and we'll be installing around 250,000 bins over the next 3 to 4 months in the warehouse. We took over the fulfillment staff in the warehouse as of January 1, more than 400 employees. That has been -- -- it's fair to say that it's been successfully completed. We haven't had any major hiccups. We expect hiccups, but basically, we were kind of well prepared, and it has been very well executed from our team. So we're quite happy that -- to see that we've seen increased cost efficiencies, costs have come down. So the savings that we've expected from the in-sourcing of the fulfillment have started to materialize. We also have inaugurated the new warehouse next to the current one. It's a warehouses of 23,000 square meters, which now adds onto the old building, as you call is of 43,000 square meters. This new warehouse will house the processes surrounding the automated pick and pack of the AutoStore. So basically everything that is not AutoStore will be in the new warehouse. That means the old warehouse will more or less be one big order fulfillment facility. And once we're done with that, it will contain about 1 million bins and 1,000 robots. So now we're building that. And we need to kind of spend the CapEx to fit new building, which is why we now expect our CapEx to be around 5% because we need to get ahead of the curve. We learned back in '16 that the worst thing that could happen to a e-tailer -- fast-growing e-tailer is that if you get too tight on the -- on your warehouse capacity, you basically get quite large [indiscernible] of scale. So that's why it is cheaper to invest in space and in robotics than to run a 2-tier ship on the warehouse. So having said that, I would like to go to the next slide and hand over to Sandra for the financial update.

[Sandra Gadd, Group Chief Financial Officer]

Thank you. So if we look at the group results, it concludes the net revenue growth of 48.5% for the group in the first quarter. Growth in local currency was 54%. The pattern we've gotten used since April last year, where we see a change in product mix leading to lower return rates continued also into the first quarter this year. Growth was especially strong in the Men's, Kids, Sports and Home category.Net revenue in the Nordics increased to 47.7% during the first quarter, driven by Denmark and Sweden. The growth in Norway and Finland was slightly below average. Rest of Europe increased with 58.1% as Booztlet with emphasis growing the share of sales in Germany and Netherlands. We have high ambitions on new customer growth for 2021. After the first quarter, we are well on plan with approximately 350,000 new customers onboarded. The gross margin was 40.3% in the first quarter, 8.4 percentage points higher than last year. If adjusted for the extraordinary write-down we did last year, the improvement was 0.9 percentage points. The improvement not related to the extraordinary write-down of stock is explained by the inventory risk-sharing agreement that previously impacted the fourth quarter. As from the autumn/winter season 2020, this effect was moved forward to the end-of-season sales in the first quarter of '21. The adjusted EBIT margin was 6% in the first quarter, an improvement of 14 percentage points. If excluding the effect from the extraordinary write-down, improvement was 6.3 percentage points driven by overall improvements in cost ratios as I will come back to. So if we move to the next page, we can see that the net revenue growth for Boozt.com was 40.7% in the first quarter. In local currencies, growth was around 45%. Growth was strong throughout the quarter, but with a positive trajectory towards the end of the quarter. The sales mix with higher growth in Men's, Kids, Sports and Home, positively impacted growth as well as return levels compared to last year. With our high focus on growth for 2021, we have increased the absolute level of marketing spend with more than SEK 120 million to continue the strong growth in new customers. Despite the high level of marketing spend, the underlying profitability also when excluding effects from the extraordinary write-down last year was improved as scale contributed to leverage on the cost base. Average order value increased with 3.7% to SEK 815 despite currency headwinds. Change in sales mix toward Kids, Sport and Home at the expense of occasion wear categories, affected the gross average order value negatively but was compensated for by the lower return rates and increased number of items per basket in these categories.Finally, I just want you to note that the Boozt.com segment now includes the physical Beauty by Boozt store. This means that we have recalculated comparable numbers in our segment reporting, while the one-off of SEK 35.4 million related to the closure of the store in Copenhagen that we did in March last year has been reallocated to the Boozt.com.Moving on to the next page. We see that Booztlet grew 100% in the first quarter and around 107% in local currencies. Coming into the first part of the second quarter '21, we have tougher comparison numbers to work against for the whole group, but this is especially affecting Booztlet that got access to low-valued stock apps that have performed extraordinary write-down in March last year. So as discussed in our full year report, Booztlet will try out expansion outside of our main markets in the Nordics with main focus on Germany and the Netherlands. In the first quarter, 11% of total sales was outside of the Nordics, which is to compare to 4% in the first quarter last year. To secure a healthy growth with satisfying unit economics, we now secured better distribution agreements for these markets, which is expected to allow for further investments into new customers.Finally, you should also note that the Booztlet segment includes the group's physical Booztlet stores. Our physical stores are affected by COVID restrictions. All in all, the 3 stores that are included in the Boozt and the Booztlet segment carried a loss of around SEK 2 million in the quarter. But this is expected to normalize around the breakeven towards the end of the year where we expect to decide it to be fully opened. So moving onto the next page, we see the development in the cost ratios in the first quarter. The fulfillment cost ratio decreased with 2.3 percentage points to 11.1%. The decrease was driven by lower return rates, leading to lower handling and distribution costs. Decrease is also impacted by the in-source fulfillment operations as well as contractual improvements in distribution. As Hermann mentioned, the insourcing of our warehouse operations has developed in accordance with our expectations without any major hiccups. We're fine-tuning our operations to ensure best possible operational efficiency, enabling a strong customer proposition as well as market-leading unit economics. Therefore, we expect that the fulfillment cost ratio to stay around 11% for the full year of '21 as we have communicated previously.The marketing cost ratio was 10.6% in the first quarter, slightly higher than last year. This is in line with our strategy to grow our business at full speed in '21 with continued high customer growth, low customer churn and higher retention from existing customers. The adjusted admin and other cost ratio decreased with 2.4 percentage points in the quarter to 9.2%, driven by general scale effects and leverage on staff costs and positive currency effects from operations. Throughout the first quarter, we have invested heavily into new employees to make sure that we have continued ability to strengthen the customer experience and continued growth also beyond the immediate future. The adjusted depreciation cost ratio decreased with 1.2 percentage points to 3.3% in the quarter, implying that we are running close to full capacity in relation to our warehouse automation. As we will invest to secure more capacity in our fulfillment center, we expect this ratio to increase in the second half of '21.Moving on to the next page. We see that the net working capital decreased from 11.9% to 7.8% of last 12 months net revenue. The corresponding number in Q4 2020 was 1.7%. Compared to last year, the decrease to 7.8% was driven by leverage in working capital and a higher inventory turnover rates as well as lower return rates. Compared to Q4, the net working capital increase is heavily impacted by stock building activities to facilitate high growth in the first half of '21 as well as the buildup of our inventory for our new home category and Booztlet. We also focus on securing attractive campaign stock for 2021. Moving on to CapEx that totaled SEK 42.5 million in the quarter. We see that the investments in intangible assets slightly increased compared to last year, while the investment in warehouse automation of SEK 25.7 million is related to the completion of the fourth expansion phase of AutoStore. And as Hermann mentioned before, we are, due to the high growth rates, running a relatively tight shift in relation to warehouse capacity. Ensuring warehouse capacity is key to continue to grow our business the way we would like it to. So due to the general delays in the raw material market, we will focus on securing future storage capacity as soon as possible, which may imply that parts of the investments planned for 2022 from earlier than previously communicated. Our current estimate on CapEx for '21 is at 5%. The operational cash flow for the first quarter was a negative SEK 193.4 million. That is to be compared to a negative SEK 6.9 million last year. The outflow is mainly due to intensive stock building to continue our growth journey and provide customers with the best possible store. So this concludes the financial update. And I would like to hand back to Hermann.

[Hermann Haraldsson, Co]

Thank you, Sandra. And if we go to the next slide, which is the capital allocation priorities. Just to reiterate because we've got a question about now that we have done the listing in Copenhagen and did a capital increase, when will you spend the money? I think it's important for us to say that we are in no hurry and our kind of -- our principles are unchanged, and we try to maintain discipline of our focus is, as always, organic growth. And if it makes sense, would like to go do any bolt-on acquisitions, nothing transformative if we can -- so if we can strengthen categories, if we can access to -- get access to some technology maybe faster than expected or if we can improve our Nordic market presence, we will do this. But so far, we haven't found a match. And again, to the question that we are not in hurry. We want -- don't want to do anything that will jeopardize the organic growth. We are growing organically in absolute numbers more than any of the potential average targets. So it would be stupid to sacrifice that for some short term or some enticing acquisition opportunities. So we are still focusing very much on organic growth. Of course, in time, if we don't find anything, and we'll sit on in excess cash, we will return it to the shareholders in tax-efficient way. So if we go to the next slide, the outlook, the final slide, just to reconfirm the outlook that we expect to grow net revenue between 25% and 30%, and to an adjusted EBIT margin above 5.5%. So this is -- and then again, our medium-term ambitions, they are still the same to grow faster than the market and to keep the margin in a 5% to 7% range. Again, we are very much focused on the growth and would rather have -- we don't want to sacrifice growth for short-term margin expenses. So it's very much a growth focus in the market that is growing. So this concludes our presentation. So I would like to hand over to the operator for any questions. I don't know if you're still out there, but we are ready to take some questions.

[Operator]

[Operator Instructions] The first question comes from the line of Johan Brown from ABG.

[Johan Brown, Research Analyst]

I'm curious about the Q1 EBIT margin here. And you did the exercise for 2020 where you came with a sort of pandemic adjusted EBIT margin of 5.2%. How do you reckon this quarter's margin would play out with the same exercise, so to say?

[Hermann Haraldsson, Co]

We expect that this kind of this margin, this quarter is I would say pandemic free, but we don't think there's any reason to do adjustment for the pandemic. I think that's -- I'm inclined to say it's bridge under water -- water under the bridge, but it's like -- so this is kind of a sustainable margin we have paid.

[Sandra Gadd, Group Chief Financial Officer]

And the margins, when you grow this much, of course, we got a lot of leverage on cost of personnel and other operational costs.

[Johan Brown, Research Analyst]

Yes. Great. And then also regarding the specific categories, you mentioned that Man, Kid, Sport's and so forth, grow faster. Is it possible to get a range between the high and low end of category growth during the quarter?

[Hermann Haraldsson, Co]

We don't really disclose the different categories. But obviously, what -- of course, the women have been buying less. So the women's share is now below 50%, actually below 45%, so which is quite encouraging because that means that it's the categories that are growing quite fast, and these are typically low-returning categories. So we expect that now society is open, and we will be more social that the women will come back and buy more dresses and more occasional wear. But obviously, in other categories there, some of the categories are growing more than the average growth.

[Johan Brown, Research Analyst]

And a last question as well. You mentioned April and May being strong. Is it possible to get any sort of indication of how the growth rates have started during Q2.

[Hermann Haraldsson, Co]

No. Short answer. Sorry.

[Operator]

The next question comes from the line of Daniel Schmidt from Danske Bank.

[Daniel Schmidt, Research Analyst]

Sandra, a couple of questions from me. And starting with Booztlet, which is showing tremendous growth in sort of outside the Nordics, and it's, of course, from very low levels. And I think you mentioned something about the new distribution agreement or something that's going to improve unit economics. Could you say anything about this growth that you see outside the Nordics in terms of profitability? And if you're not there, when will you be delivering profitable growth outside the Nordics in this channel?

[Sandra Gadd, Group Chief Financial Officer]

Well, growth should always be profitable, and we make sure that we are -- that on each and every order on Booztlet, but of course, we want to get as much -- we don't want to have more costs than we need to. So if we can get better distribution agreements, we want to have that. So it's looking good. But it can always look a little better.

[Daniel Schmidt, Research Analyst]

And was this a change to the distribution economics that you have done recently or been able to apply recently? Or was that at the start of Q1? Or is this going to sort of -- where are we in that sort of economics?

[Sandra Gadd, Group Chief Financial Officer]

That's more forward-looking actually. So it's an effect that will come for the second half of this year.

[Daniel Schmidt, Research Analyst]

Okay. And although it is from very low levels, clearly, it seems to be working. And do you have any sort of analysis, clearly, you seem to be filling a gap in these markets, although Zalando has also enough price offering. Can you say anything about competition and what makes you look good and be off to a very good start?

[Sandra Gadd, Group Chief Financial Officer]

Well, it is the Nordic assortment then we have the Nordic brands, and we really cater for the Nordic kind of feeling, and we've seen that, that is quite attractive to also people outside of the Nordics and especially in these countries that are quite close to us geographically as well. So there's less competition in this type of -- or this part of the segment, you can say.

[Hermann Haraldsson, Co]

Yes. I think if I can add and it is that we seem to be the only ones having kind of a multi-category outlet. Most of our peers have been going for the flash sale model where you have campaigns on specific brands. So we seem to be kind of -- yes, touching on something that the consumer wants, where they want to browse within categories and brands. So it's a good feat. And when it combined with strong Nordic brands, that becomes quite attractive.

[Daniel Schmidt, Research Analyst]

Yes. Okay. Interesting. And another question. If we see a normalization of sort of the world with less restriction and off-line coming back and maybe a bit more even in terms of where sales are going in respect to sales channel in the market. Do you think that, that in any way is going to affect your ability to make good campaign buys, so to speak?

[Hermann Haraldsson, Co]

We -- the market is still, I think we've been saying that for the last 3 years, Daniel, is that the market is still quite -- is not in balance because we have the huge offline, online migration, which means that a lot of players have difficulty in -- on a micro level to forecast demand. So there will always be kind of excess stock. And even though most of the brands said that they will cut down on the SS21 production, there is still a lot of stock in the market. So we don't see any shortages on stock going forward, our ability to get campaign stock. And so -- and I've been doing this for 11 years, and they've been talking about being able to forecast demand in -- all these 11 years, but they still can't do itself. So I think that we will still be able to get access to the stock.

[Daniel Schmidt, Research Analyst]

Yes. I hear you, but I just -- I was just thinking that maybe sort of last year was unusually difficult to forecast.

[Hermann Haraldsson, Co]

Yes. Yes. But the last year actually was difficult for us to get hold of stock because we need stock to be packed in the right way, market in the right way with the right data. So now we actually can get access to the stock earlier than last year. And we're quite well stocked for the main June period in this quarter where we actually were understocked.

[Daniel Schmidt, Research Analyst]

Yes. No, I hear you. And then third topic, return rates, of course, which I think you mentioned also was lower in Q1, and that was, of course, what we saw as a trend during 2020. Where do you see that going now if you also believe that women's share is going to go up? Are you expecting some sort of reversal in Q2? Or is that more going to happen in the latter half of this year? And also in conjunction with that question, could you update us on our fair use policy reach? Have you widened the reach of that policy in the past quarter?

[Sandra Gadd, Group Chief Financial Officer]

Well, it's -- the return pattern we saw over the last year basically continues. So it is this 5 percentage points lower than previously. And yes, we do see that people now are like slowly getting into the more categories that have a little higher return rate. But the fair use impact, of course, had a major impact on our business, and that's there to stay. I'm not sure exactly what you meant with the others in relation to the fair use.

[Daniel Schmidt, Research Analyst]

No, I think you updated us on the exact number, actually. If I'm not mistaken, you said something about 9,000 consumers. And at the end of last year, that was 13,000. And is that number higher now? Or is it sort of -- is it standing out?

[Sandra Gadd, Group Chief Financial Officer]

It's around 17,000 now. So it's still fairly low, but...

[Daniel Schmidt, Research Analyst]

And is there any way that you can shed some light on sort of how much the fair usage policy implementation has impacted return rates? Or what is what basically in these 5 percentage points?

[Hermann Haraldsson, Co]

Yes. No, the fair use policy was probably brought down by some 2 to 3 percentage points. So it's quite a significant amount. So you have had a lot of -- a few people have impacted returns enormously, and we actually give people the benefit of the doubt. So these are extreme returners, but the effect is somewhere between 2 and 3 percentage points and probably close to 3. And the rest is obviously category mix. And that's why it's good to see that Women now is actually below 45% in the quarter. Of course, it will go up during the next month, as they will buy into more dresses. But we can see there's strong growth in Kids, in Home, in Beauty, Men are maintaining the growth rates. So we don't expect to go back to the return rates we saw before the pandemic.

[Daniel Schmidt, Research Analyst]

No, no, makes sense. And -- but are you seeing any sort of change in terms of like-for-like garments when it comes to return rates, if you look at womenswear, for instance. Is there an equal amount of returns on each and every garment that you saw before the pandemic? Or has that changed also?

[Hermann Haraldsson, Co]

No, that is actually -- it is the same. And you might say that, of course, on dresses as the -- serial returners have been blocked, Of course, you see a kind of decrease in that. But in general, people don't buy -- the majority doesn't buy with an intention to return. They buy because they want to like something and it is just what -- but it's just -- if it doesn't fit or if they don't like it. And so that's why we still love returns. Of course, we hate excess returns and unnecessary returns, but we still want to make it easy to return, otherwise people won't buy. So -- but of course, we want to keep on reducing return rates, unnecessary return rates. But having said that, it often leads to a discussion regarding the CO2 emissions and online is still the most CO2 efficient way to to buy clothes by far. So we are aware of it, and we try to reduce it, but it still has to be easy to return.

[Daniel Schmidt, Research Analyst]

I hear you. Final question on this topic, and then I'll -- and then I'm done. Everyone, of course, we've talked about the fair usage now, which is something that you have implemented and others, too. Are you doing anything else if you look at sort of the display of your website in terms of tools that the consumer can use to do themselves, get a better view on what size they need. Have you done any improvements? Or are you doing any improvements to that during this year compared to last year?

[Hermann Haraldsson, Co]

Well, you can say that we -- if you go buy on the site, we recommend your sizes. And of course, we try to use machine learning to do some kind of the old-fashioned collaborative filtering, where we try to find people that we believe match your size. And if you haven't bought in a category before, we would recommend it so. So that's kind of the easiest way. But the issue is that brands are still not very consistent within their own sizing and a fit. If I like a tight fit, sometimes it's just too tight and then I return. So I think that's the case. So of course, we cannot -- we try to assist. But and we try -- of course, we're trying to improve the algorithm, but -- and this is kind of -- this is the holy grail in trying to make sure that people don't make obvious sizing mistakes.

[Sandra Gadd, Group Chief Financial Officer]

And then there's also -- it's like the born continuous work we always have to do in relation to getting the right data from the brands, and that is -- they're also changing a lot by trying to gather data in the right way so that we can pack that and display that to the customer in a good way, and we work with pictures. And this is more of a everyday thing that we've always done and we also will continue to do probably.

[Operator]

The next question comes from the line of Daniel Ovin from Nordea.

[Daniel Ovin, Senior Analyst]

So I had one question on the gross margin here. If I look 2018 and '19, it still looks like a pretty high gross margin. And you mentioned here about 90 basis points something from risk-sharing agreements. But would you say that the gross margin that you have now is on a normalized unsustainable level also going forward? I'm thinking that perhaps with very, very strong sales growth but your markdowns were below normal. Maybe if you can comment on that.

[Sandra Gadd, Group Chief Financial Officer]

Well, it's hard to say. We came into this year with a very strong inventory position. So that helped us quite a lot. Of course, we don't have any old stock. We were almost sold out of stock before. So our inventory position allows for a good product margin. So it's hard to say that depends on how the stock composition will look. That will change over time, of course. But we're very happy with this gross margin, office.

[Daniel Ovin, Senior Analyst]

Okay. And then one question also on the fulfillment cost ratio that was down quite significantly. So maybe can you break that how much was from kind of lower return rate, how much was from better capacity utilization from strong sales? And also perhaps if there was any efficiency gains in that number?

[Sandra Gadd, Group Chief Financial Officer]

Well, actually, right now, it's a little bit of everything, and we actually prefer not to sort it out because we are still fine-tuning our operations and trying to get everything so what is returned, how it's working with the return rate, what is the more price per hour we pay. So we believe like the level we are, around 11%, looking at the more fuller picture. That's a good level and a level we want to stay in.

[Hermann Haraldsson, Co]

Yes, I think normally we say that kind of half is distribution, half is fulfillment. Fulfillment costs have come down, and we also have some savings in distribution. So it's fair to say, it's a bit of a bit of everything.

[Daniel Ovin, Senior Analyst]

Okay. And also finally then on the admin and other cost line. So it was also down quite significantly. You mentioned here that you were kind of recruited personnel, et cetera. But what do you think about this going forward? Is there any also one-offs in this line in this quarter? Or should we expect it to remain around those levels also going forward?

[Sandra Gadd, Group Chief Financial Officer]

Yes. We will continue to get scale, of course, as we grow and continue to grow this strong. And as I said, we will continue to invest in personnel in our headquarters because it's really important that we do. But this is where you get the benefit when you reach the scale that we have now, that you increased sales more than you increased staff. So there's no one-offs in that sense.

[Hermann Haraldsson, Co]

Of course, we're probably slightly behind the curve on staff. You can't keep up with a growth like that. But it's -- I think we're on a good level.

[Operator]

The next question comes from the line of Magnus Jensen from SEB.

[Magnus Thorstholm Jensen, Senior Equities Analyst]

I have a couple as well. The first one goes to -- I mean, the question is, of course, how will consumers react at the other side of COVID? And I guess one early indication could be how consumers have acted following stores open in Denmark early March. Have you seen any change in sort of consumer behavior demand following stores open in Denmark at that point of time?

[Hermann Haraldsson, Co]

It's a good question, and it's actually hard to say because we've been continuing growing fast also in Denmark and if we compare with our expectations, we haven't actually seen any effect. Of course, we see some kind of a similar pattern as last year when we had the reopening. There's a huge interest, people going out, but we don't really see the effect. I think in Denmark last weekend, department stores opened. And we saw a slight effect during the weekend, but on the weekdays, we were back to a good growth. So I think it's actually it's a bit too early to say what is happening. But again, we're quite firm that we believe that now that's almost 15 months have passed, people have changed habits, and we think they will stick and the offering of online with this huge assortment at attractive prices, it's really hard to match. And even though some consumers might have missed the physical experience once they go out and have low assortment, poor service and maybe not even compared to prices, it's going to a bit difficult to match.

[Sandra Gadd, Group Chief Financial Officer]

Also, you know that the demand for fashion was down around 20% in the Nordics for last year. And we do see like people really want to get back there. So we think that the demand will increase on a general basis after the site is opening up.

[Magnus Thorstholm Jensen, Senior Equities Analyst]

Okay. Very clear. Second question, I mean, during this pandemic, there's been a rush of customers coming on to your site. Is there any difference in these consumers compared to what you had before? I'm thinking in particular in terms of retention rate of this cohort of customers. Is that the same as you've seen before? Are they best loyal?

[Hermann Haraldsson, Co]

Good question. Actually, they behave -- it is actually the same as the old ones, which is quite fortunate. They look also very much like the old ones. I think the only difference is that it's slightly older skewed and more men, but we monitor repurchase rate after 30 days, 60 days, 90 days. And they are very similar to the old cohorts. So it hasn't changed actually. So that's also why we actually believe that this continues to increase, for a large degree, it will stick.

[Magnus Thorstholm Jensen, Senior Equities Analyst]

Okay. And last question, I'm not sure you want to answer, but you talked a little bit about the other categories, Home, Kids, again Sports. Can you say how much that is of revenue today?

[Hermann Haraldsson, Co]

We don't really disclose it, but as I said, Women's space is below 4% to 5% in the quarter and Men is probably around 20%. So it's getting up there, the other categories. And of course, Home is still below 5%. And so -- but they're growing fast, especially Kids and Sports are growing very fast.

[Magnus Thorstholm Jensen, Senior Equities Analyst]

Okay. So just to clarify, you say Women, let's say, 45% and Men at 20%, so that's 35% which is Kids, Sports, Home and Beauty roughly?

[Hermann Haraldsson, Co]

Maybe a little less on that.

[Operator]

The next question comes from the line of Michael Benedict from Berenberg Bank.

[Michael Benedict, Analyst]

First one, just on the shift to becoming a true platform. Have you got any update on your intention to sign more consignment-like agreements in the near term? That's my first question.

[Hermann Haraldsson, Co]

Yes. No, we are not pushing any, really not pushing the consignment. And again, when we were born, we had consignment brands, and it was really difficult to scale those brands because they were very reluctant to commit to increased stock. So as long as we're growing so fast, between 25% and 30%. We like to be in control and a big part of that is do the own buy. And as we don't do the partner model with split fulfillment, we're not pushing the consignment agenda.

[Michael Benedict, Analyst]

Great. Very helpful. And then my only other question was on whether there are any sort of one-off margin impacts we should be aware of in Q2? I guess a little like the risk sharing shift in Q1.

[Hermann Haraldsson, Co]

No, not really. As Sandra said, we came in the quarter with a strong inventory position, with a strong campaign by position. So that was -- yes, so there's no one-off in Q1 here, not really.

[Michael Benedict, Analyst]

Sorry, I meant in Q2.

[Hermann Haraldsson, Co]

Sorry, in Q2, okay. okay.

[Sandra Gadd, Group Chief Financial Officer]

Well, in the beginning of Q2 last year, there was like -- when the pandemic hit very hard, the marketing cost or the cost for hiring new customers were a little lower. So of course, we will be a little -- that's normal back again. So that will have an impact. But otherwise, we don't see anything specific.

[Operator]

[Operator Instructions] We have no further questions, so I will pass back for any closing comments.

[Hermann Haraldsson, Co]

Okay. Thank you for your time. So we have nothing more. So we hope you have a good day and look forward to talk to you over the next couple of weeks and again in 3 months' time. Thank you, and have a good day.

[Operator]

Thank you for attending. You may now disconnect your lines.