Earnings Call: Q1 2021

May 7, 2021

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 there'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 we said, I am 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 the control came in line and we managed to basically to manage the high amount of 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 130 lives, but we have agreements with around 260 brands and we will have more than 200 brands live at the end of Q2. So definitely home category very good for us and we are 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 are not in that position. So we have been we're 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 net working capital is high and the cash flow is negative. We have also taken some very strong steps to transform into what we call kind of a true platform business. As we have talked about before, we want to we are in control of a bigger part of the value chain, which is why we now have launched BoostPay across the entire Boost universe, both Boostlet and boost.com as well as we have been ramping up and increasing the boost media partnership. And finally, current trading, it's strong. April was very strong and we have seen the beginning of May being strong. So we see that, yes, again, that the consumer demand is high and this change of habits that has taken place over the last 12 months to 15 months seems to stick. So that's good. And just to mention again, we 2020 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 a 75% increase versus Q1 last year, which is very positive because this is a sign that the customers that buy from us, 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 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 ore development, we see the number of orders. It was up 36%. But very it's very pleasing to see that the average basket size is up versus last year, up now at SEK815, 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. There is always kind of the wish that for every e commerce or every basically every retailer too, when we tell 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 in the basket. So that is extremely encouraging and a contributory fact to increasing basket unit 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 30%. The number of orders for 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. 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 kind of the true frequency number indicates that direction because we see that if we strip the fair use customers of which we basically want to call unfair use customers, if we strip them out, we can see that our frequency actually is slightly Op was 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 underinvested 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 we've initiated basically Phase 5 and 6 of Autostore and we'll be installing around 250,000 bins over the next 3 to 4 months in the warehouse. We took over the full room 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 quite well prepared and it has been very well executed from our team. So we are quite happy that to see that we have seen increased cost efficiencies, costs have come down. So the savings that we have expected from the in sourcing of the fulfillment have started to materialize. We also have inaugurated the new warehouse next to the current one. We a warehouse of 3,000 square meters, which now adds on to the old building as you call it of 43,000 square meters. This new warehouse will house the processes surrounding the automated Pick N Pack or the Autostore. So basically everything that is not order store will be in the new warehouse. That means that the old warehouse will more or less be one big Orzo facility. And once we're done with that, it will contain about 1,000,000,000 yes, 1,000,000 bins and 1,000 robots. So now we're building that and we need to kind of spend the CapEx to fit the building, which is why we now expect our CapEx to be around 5%, because we need to get ahead of we learned back in 2016 that the worst thing that can happen to an retailer fast growing each other, because if you get too tight on the warehouse capacity, you just basically get quite large this kind of scale. So that's why it's cheaper for us to invest in space and in robotics than to run a 2 type ship on the warehouse. So having said that, I would like to go to the next slide and hand over to Santa for the financial update. Thank you. So if we look at the group results, it concludes the net revenue growth of 48.5% for the group in the Q1. 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 Q1 this year. Growth was especially strong in the men, kids, sports and home category. Net revenue in the Nordics increased with 47.7% during the Q1 driven by Denmark and Sweden. The growth in Norway and Finland was likely below average. Rest of Europe increased with 58.1% as Boost is growing the share of sales in Germany and the Netherlands. We have high ambitions on new customer growth for 2021. After the Q1, we are well on plan with approximately 350,000 new customers on boarded. The gross margin was 40.3% in the Q1, 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 Q4. As from the autumn winter season 2020, this effect was moved forward to the end of season sales in the Q1 of 2021. The adjusted EBIT margin was 6% in the 1st quarter, an improvement of 14 percentage points. If excluding the effect from the extraordinary write down, the 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 boost.com was 40.7% in the Q1. 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 highest growth in men, 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 SEK120 1,000,000 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. Our increased with 3.7 percent to DKK 8.15 despite currency headwinds. Change in sales mix toward Kids, Sports and Home at the expense of occasion wear categories affected the gross average order value negatively, that 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 Boost of Com segment now includes the physical beauty by Boost store. This means that we have recalculated comparable numbers in our segment reporting, while the one off of SEK 35,400,000 related to the closure of the store in Copenhagen that we did in March last year has been reallocated to the Bussler complex. Moving on to the next page, we see that Boeselijk grew 100% in the Q1 and around 107% in local currency. Coming into the 1st part of the Q2 of 'twenty one, we have tougher comparison numbers to work against for the whole group, But this is especially affecting boostled that got access to low value stock after we have performed extraordinary write down in March last year. So as discussed in our full year report, Brussels will try out expansion outside of our main markets in the Nordics with main focus on Germany and the Netherlands. In the Q1, 11% of total sales was outside of the Nordics, which is the comparative 4% in the Q1 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 costs. Finally, you should also note that the Boosted segment includes the group's physical Bluetooth stores. Our physical stores are affected by COVID restrictions. All in all, the 3 stores that are included in the Boost and the Boosted segment carried a loss of around SEK 2,000,000 in the Q1. But this is expected to normalize around the breakeven towards the end of the year when we expect the society to be fully open again. Moving on to the next page, we see the developments in the cost ratios in the Q1. 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 store fulfillment operations as well as contractual improvements in distribution. As Herman mentioned, the in sourcing of our warehouse operations has developed in accordance with our expectations without any major hiccups. We are 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 'twenty one as we have communicated previously. The marketing cost ratio was 10.6% the Q1, slightly higher than last year. This is in line with our strategy to grow our business at full speed in 'twenty one 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 Q1, 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 twenty twenty one. 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 on working capital and a higher inventory turnover rate as well as lower return rates. Compared to Q4, the net working capital increase is heavily impacted by stock building activities to facilitates high growth in the first half of twenty twenty one as well as the buildup of our inventory for our near home category and boost list. We also focus on securing attractive campaign stock for 2021. Moving on to CapEx that totaled SEK42,500,000 in quarter, we see that the investments in intangible assets slightly increased compared to last year, while the investments in warehouse automation of DKK25,700,000 is related to the completion of the 4th expansion phase of Orestor. And as Herman 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 2020 to come earlier than previously communicated. Our current estimates on CapEx for 2021 is at 5%. The operational cash flow for the Q1 was a negative SEK193,400,000 that is to be compared to a negative $6,900,000 last year. The outflow is mainly due to intensive stock building to continue our growth journey and provide customers with the as possible as well. So this concludes the financial update and I would like to hand back to Hunde. Thank you, Sandra. And if we go to the next slide, which is the our 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. Our focus is as always organic growth. And if it makes sense, we would like to go do any bolt on acquisitions, nothing transformative. If we can so if we can strengthen categories, we can access to get access to some technology maybe faster than expected or if we can improve our modern market presence, we can we will do this. But so far, we haven't found a match. And again, to be quite sure that we are not in we want don't want to do anything that will jeopardize the organic growth. We are growing organically in absolute numbers more than any 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 excess cash. We will return it to the shareholders in a 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% 30% and to an adjusted EBIT margin above 5.5%. So this is and then again our medium term financial 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 expansion. So it's very much a growth focus in the markets that is growing. So this concludes our presentation. So I would like to hand over the operator for any questions. The first question comes from the line of Ewen Brown from ABG. Please go ahead. Your line is open. Thank you. Hi, guys. 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 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 adjust them for the pandemic. I think that's I'm inclined to say it's bridge under the water water under the bridge, but it's like so This is kind of sustainable margin we expect. And the margins, when you grow this much, of course, we got a lot of leverage on Cost of personnel and other operational costs. Yes. Great. And then also regarding the specific categories, you mentioned that men, kids, sports and so forth grow faster. Is it possible to get A range between the high end and low end of category growth during the quarter? 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, they are some of the categories are growing more than the average growth. Thank you. And a last question as well. You mentioned April and May being strong. Is it possible to get any sort of indication of how And the growth rates have started during Q2? No. That is your answer, sorry. All right. I understand. Thank you very much. Those were all my questions. Okay. Welcome. Thank you. The next question comes from the line of Daniel Schmidt from Danske Bank. Please go ahead. Your line is open. Yes, good morning, Herman and Sandra. A couple of questions from me. And starting with Boostlet, which is showing tremendous growth in sort of outside the Nordics and it's calls 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? Well, what should always be profitable and we make sure that we are that on and every order on bootslet. But of course, we want to get as much we don't want to have more cost 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. It doesn't matter. 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 that year? No, that's more forward looking actually. So it's the effect that will come for the second half of this 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 an off price offering. Can you say anything about competition? And what makes you look good and be off to a very good start? Well, it is the Nordic assortment and we have the Nordic brands and we really cater for the Nordic kind of feeling and we have 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 is a lot of competition in this type of or this part of the segment, you can say. Yes. If I can add if I can add then is that 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 fit. And then if combined with strong Nordic brands, that becomes quite attractive. Yes. Okay. Interesting. And another question. If we see a normalization of sort of the world with less restriction and offline coming back and maybe a bit more even in terms of where sales are going in respective 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? We the market is still I think we have been saying that the last 3 years, Daniel, is that the market is still quite is not in a balance because we have this huge offline on our 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 excess 2021 production, there is still a lot of stock in the market. So we don't see any shortage on stock going forward or ability to get campaign stock. And I've been doing this for 11 years and they've been talking about being able to forecast demand in all the cylinders, but they still can't do it. So I think that we will still be able to get access to the stock. Yes. I hear you, but I just I was just thinking that maybe sort of last year was unusually difficult to forecast. Yes, but last year actually was a bit difficult for us to get hold of stock because we need stock to be packed in the right way, marked the right way with the right data. So now we actually can get access to the stock earlier than last year. And we are quite well stocked for the main June period in this quarter where we actually were unstuck. Yes. No, I hear you. And then third topic, return rates, of course, which I think you mentioned also 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, And could you update us on our fair use policy reach? Have you widened the reach of that policy in the past quarter? Well, the return pattern we saw over the last year basically So it is this 5 percentage points lower than previously. And yes, we do see that people now are like slowly by getting into the more categories that have a little higher return rate. But the fair use impact is, 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? Now I think you updated us on the exact number actually if I am not mistaken. You said something about 9 1,000, 9000 consumables. And at the end of last year, that was 13,000. And is that number higher now or is it sort of is it running out? It's around NOK 17,000. So it's still fairly low, but 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? Yes. Now the fair use policy and public broad return 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 doubts. So these are extreme returns, but the effect is somewhere between 2% and 3% points and profit flows 3% and the rest is obviously category mix. And that's why it's good to see that women now is actually below 4% to 5% in the quarter. Of course, it will go up during the next months as they would buy into more dresses. But we can see the 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. No, no, it 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? No. That is actually it's the same. Now you might say that of course addresses as The serial returners have been blocked. Of course, you see a kind of a 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, but it's just If it doesn't feel it's not 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 because otherwise people won't buy. So but of course, we want to keep on reducing return rate and as the return is. But having said that, if it often leads to a discussion regarding CO2 emissions and online is still the most CO2 efficient way to buy close by far. So we are aware of it and we try to reduce it, but it still has to be easy to sell. I hear you. Final question on this topic and then I'm done. Everyone, of course, we've talked about the fare usage now, which 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 themselves get a better view of what Size they need. Have you done any improvements? Are you doing any improvements to that during this year compared to last year? Well, you can say that we if you go and 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 an academy before, we would recommend it. So that's kind of the easiest way. But the issue is that the brands are still not very consistent within their own sizing. And our fit, if I like a tight fit, sometimes it's just too tight and then I'll return. So and I think that's the case. So of course, we cannot we could try to assist, But and we're trying to constantly trying to improve the algorithm, but and this is kind of this is the Holy Grail and trying to make sure that people don't and make obvious sizing mistakes. And then there is also it's like the boring continuous work we always have to do in relation to getting the The right data from the brands and that is they are also changing a lot by trying to gather data in the right way so that we can pack that and display that the customer in a good way and we work with pictures. And this is more of an everyday thing that we always done and we all should continue to do probably. Yes. Okay. That's all for me. Thank you. Thanks, Ingrid. Thank you. The next question comes from the line of Daniel Ozan from Nordea. Please go ahead. Your line is open. Yes. Hello, Herman and Sandra. So I had one question on the gross margin here. If I look at 2018 2019, it still looks like a Pretty high gross margin. And you mentioned here about 90 basis points on it from risk sharing agreements. 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 that your markdowns were below normal. Maybe if you can comment on that? Well, it's hard to say. We came into this year with a very strong inventory position. So that helped us A lot of course. We don't have any old stock. We have almost sold out of stock before. So our inventory position allows for a good product margin. So of course, it's hard to say. That depends on how the other stock composition will look. That will change over time, of course. But we're very happy with this gross margin, of course. Okay. And then one question also on the fulfillment cost Ratio that was down quite significantly. So maybe can you break down how much was from kind of lower return rate? How much was from better capacity The utilization from strong sales and also perhaps if there was any efficiency gains in that number? Well, actually right now, it's a little bit of everything and we actually prefer not to sort it off because we are still fine tuning our operations and trying to get everything. So what is 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% is Looking at the more polar picture, that's a good level and a level we want to sustain. Yes. I think that normally we say that kind of half is distribution half is fulfillment. Fulfillment costs have come down and we also have some saving in distribution. So it's a bit of everything. Okay. And also finally then on the admin and other cost lines, so it was also down quite significantly. You mentioned here that you were kind of recruited personnel, etcetera. But what do you think about this going forward? There any also one offs in this line in this quarter? Or should we expect it to remain around those levels also going forward? Yes. We will continue to get scale, of course, as we grow and continue to grow this strong. And And as I said, we will continue to invest in personnel in our headquarters because it's really important that we do. But Not this is where you get the benefit when you reach the scale that we have now that you will increase sales more that you increased staff. So there is no one offs in that sense. Of course, we are probably slightly behind the curve on staff because you can't keep up with growth like that. But it's I think we're on a good level. Yes. Perfect. Okay. That's all my questions. Thank you very much. Welcome. Thank you. The next question comes from the line of Magnus Jensen from SEB. Please go ahead. Your line is open. Thank you very much and good morning. Thank you for taking my questions. 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 That active following stores opened in Denmark early March. Have you seen any change in sort of air consumer behavior demand following Stores opened in Denmark at that point of time. 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 the department in Denmark last weekend the department stores opened and we saw a slight effect in during the weekend, but on the weekdays, we will back to a good growth. So I think it's actually a bit too early to say what is happening. But Again, we are quite firm that we believe that now that almost 5, 15 months have passed, people have changed habits and we think they will stick and are probably 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 fiscal experience, once they go out and have low assortment, poor service and maybe not even competitive prices, it's going to be difficult to match. 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. Okay. Very clear. Thank you. Jan, 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? Good question. Actually, they behave exactly 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 penetration increase for a large degree it will stick. Okay. Thank you. And last question, not sure you wanted to answer it, but you talked a little bit about the other categories, home, kids, U. S. Sports, can you say how much that is of revenues today? We don't really disclose it, but as I said, women is below 4% to 5% now 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 But they're growing fast, especially kids and sports are growing very fast. Okay. So just to clarify, you say women are, let's say, 45% and men are 20%. So that's 35%, which is kids, sports, home and beauty roughly? Maybe a little less than that. Okay. Okay. So that's fine. Thank you very much. That's all my questions. You're welcome. Thank you. The next question comes from the line of Michael Benedict from Berenberg Bank. Please go ahead. Your line is open. Morning all. Thanks very much for taking my questions. 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. Yes. Good morning, Michael. No, we are not pushing any really not pushing the consignment agenda 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 are growing so fast between 25% and 30%, we like to be in control and a big part of that is to the owned buy. And as we don't do the partner model with split fulfillment, we are not pushing the consignment agenda. Great. Very helpful. Thank you. 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? No, not really. No, not really. As Sander 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. Sorry, I meant in Q2. Sorry, in Q2. Okay. Well, in the beginning of Q2 last year, there was like when the pandemic hit very hard, the cost for retiring 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. Brilliant. Thank you very much, You're welcome. Thank you. We have no further questions. So I will pass back for any closing comments. 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, I guess, and again in 3 months' time. Thank you and have a good day.