Welcome to the Boozt Q1 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Hermann Haraldsson and CFO Michael Bjergby. Please go ahead.
Good morning, and welcome to our presentation of our Q1 2026 report. Yeah, let's just go to the agenda slide. We will have the usual agenda for the presentation, and I will present the highlights of the quarter and the strategic update before handing over to Michael for the financials. Next slide, please. We have said that 2026 would be a year of growth, acceleration, and the first quarter tells us that we are back on track for that. We delivered 4% constant currency growth, and while January and February were soft, momentum changed in March. We saw a significant increase. This correlated with the launch of our spring/summer assortment, where we went into the season with around 35% more styles than last year in an assortment that we believe is the most relevant and inspiring we have offered for some time.
We can see that our customers are responding, so that's very positive. On profitability, the underlying margin continues to improve. Our adjusted EBIT margin increased slightly versus last year, despite significant FX headwinds. Looking ahead, we are in a strong position to push harder in the second half. Our inventory is clean and healthy, and we have already committed to a significant ramp-up for the autumn/winter season to fully capture the growth momentum that we're building. We will do this from our new base as the headquarters transition to Copenhagen was completed in February. This was done without disruption and gives us the foundation to build our culture and the best team in our industry. Today, we are also initiating a new SEK 200 million buyback program. The cash generation remains solid, and we will continue to distribute excess cash in a disciplined way.
Finally, on the outlook, we confirm our revenue guidance of 3%-8% constant currency growth. Given the solid start of the year, the higher end of the revenue range is now considered being more likely. The adjusted EBIT margin guidance is raised 30 basis points to 5.6%-6.8% to reflect the favorable currency moves. Michael, he will take you through the details later. Now please turn to the next slide. We believe that the improvement we saw in March is due to the strategic adjustments we made to boozt.com going into 2026. We have elevated the brand. We are providing more inspiration, and we're using AI to improve the whole customer experience. Most importantly, we have right-sized and improved our inventory in many ways.
Following a year where we had to focus on cleaning our inventory, which had become too deep and without enough freshness and newness, we are now gradually building a more inspirational and a more aspirational assortment. In the first quarter, we added more than 100 new brands to boozt.com, including well-known names like Birkenstock and Hunter in fashion and Peugeot in home. We've also widened our buying within our current brand portfolio, making slightly more fashion bets. With more than 135,000 styles launched as part of the spring/summer campaign, we brought 35% more options than in SS25 to the shop, and our customers responded well by buying 40% more style variations than last year. For the second half and the autumn/winter season, the buy plan is even more ambitious.
We are adding more brands and more breadth across categories, including the return of Max Mara and Gap to the site and new additions like Paul Smith. In total, we're on track to add more than 200 new brands during 2026 across our different categories. The point is simple. Our customers are responding to a better and broader assortment. This gives us confidence in the acceleration that we're planning for the second half. Next slide, please. Looking at the women's category, we are also seeing a better trend here. After a number of quarters with a decline in customers engaging with the category, we are starting to see a stable improvement. Active customers buying women's fashion on boozt.com grew 3% in Q1, but the underlying development was even more encouraging. January and February were difficult. Cold weather and limited inventory held us back.
As it got a bit warmer in the region, and as we saw the first signs of spring, women reacted very well to the SS26 launch, supporting our acceleration in March. We expect this momentum to continue as we broaden our assortment even further in the second half of the year. It goes without saying that this also has a spillover effect onto the rest of the business. When women engage with fashion, they often also move into beauty, kids, sports, and home. You might say that a healthy women's category drives the entire platform. Next slide, please. As we scale that volume, it is essential that we do so efficiently and keep the cost base lean. AI has become a key part of how we do that, allowing us to handle increasing volumes without a proportional increase in costs.
A clear example is in customer service, where AI now handles 40% of all inquiries. By automating the routine cases, we've been able to reduce our staffing requirement, allowing us to operate with a more focused team while maintaining a high service level. In the supply chain, we have removed 20% of the manual workload by automating product categorization, among other things, which also ensures better data consistency. In the warehouse, we have effectively added 5%-10% in capacity within our existing footprint through the use of AI. It's all about using technology to make our current infrastructure work harder and more efficiently. These are just a few examples, but they give a good idea of how broadly we work with AI to increase efficiency across the entire value chain. Next slide, please.
On the customer side, we are using AI to remove friction and make the shopping experience more relevant. This is already live and already contributing. All products now have AI-generated descriptions and tags, and for the spring/summer collection, we're also using AI-generated model pictures. We're also seeing a direct commercial impact from AI-supported styling suggestions. When customers see outfits mixed and matched by AI, they add more to the baskets, increasing the average order value. As we've said before, AI is going to get us to a shopping experience that is very close to the experience you get when you engage with an outstanding shopping assistant in a physical store. The only thing that is missing is the ability to feel and touch the products. Our virtual shopping assistant is also off to a good start.
While adoption rate is still in the very early stages, the conversion rate for customers who engage with the assistant is 130% higher than those who don't engage. Even though the sample size is still quite small, results are quite encouraging. On product discovery, our recommendation click-through rate has improved from 1.5%-5%, a meaningful step in making it easier for customers to find what they are looking for. By delivering more relevant suggestions and testing a number of AI tools, we ensure that finding the right product remains as intuitive and easy as possible for the consumer. To wrap it up, AI is making us a more efficient business and better retailer at the same time. That is not always easy to achieve, and this is why we keep investing in it. Next slide, please.
We work continuously to build out our non-fashion categories, adding both strong brands and more breadth to that part of the assortment. These categories performed well in the quarter, which is also evident from the increase in customers buying from more categories. If we look at the chart, the trend is solid. Every group from two to six categories is growing in high single digits, up between 7% and 9%. This is a positive step up from what we saw last year, and it shows that our focus on cross-selling between departments is paying off. This is fundamental for us. We know that when a customer buys more than just fashion, when they add items from home or kids, they stay with us for longer, and they return fewer items. The strategy is working, and it gives us a very strong foundation for the rest of the year.
With that, I will hand it over to Michael for the financial review.
Yes. Thank you, Hermann, and good morning, everyone. I will start out by presenting our financials for the quarter, followed by comments on our updated outlook for the year. I'll start on slide number 11. As Hermann said, we grew 4% in constant currency, and this was despite of lower inventory. We thereby maintained our growth momentum from Q4, and we improved our general return profile. There are a few notables in the growth patterns that I believe are worth highlighting. First of all, our strategy with increased focus on our main premium site is firmly executed and showing results as expected. Boozt is growing 6% in constant currency, and Booztlet is declining.
Secondly, the Nordics grew quite nicely with good, stable growth in Denmark and Sweden, and we saw Norway grew 13%, where we continue to see that we have very strong potential for further growth and where we believe that we are underrepresented. Finland did not grow, and here consumer behavior appears quite weak generally. As mentioned a couple of times, March was materially stronger than January and February, and I just want to mention that this is both because constant currency growth was stronger, but also because we now see less currency headwind. This is something that will benefit us for the rest of the year, and something that will show in the reported numbers already from April. Please go to the next slide for comments on our profitability.
I think it's critical to understand that the quality of earnings are actually much stronger than they appear in the headline figures. The underlying gross margin is actually up, but impacted by FX, 70 basis points, and also timing of other revenue as well as some COGS adjustment, and this is timing. As FX effects disappear, the reported gross margin will go up, and we saw that in March. We had a positive reported gross margin in March, and that is a trend that we see continuing into April now, and we also expect for the rest of the year. The EBIT margin was slightly up. This was driven by less marketing spend. We have reduced offline and improved efficiency, and this particularly related in this quarter to Booztlet, due to reduced focus and reduced need for clearance at our outlet site.
The marketing spend was completely in line with plan and expectations as when we started the quarter, so nothing out of the ordinary. Next slide, please. In Q1, the return on our capital improved as our inventory is moving faster and performing better. As you can see on the chart to the right, our quarterly inventory turnover improved to 0.4. This, we believe, reflect both a broader, fresher, and more relevant stock profile. When you have a stock profile like that's a very solid foundation for us to increase stock and take bets. We actually strive to increase stock as soon as possible, but we are also very firm and very strict on the quality that we require. There is not much high-quality stock available at this point for the spring-summer trading.
As such, the larger inventory ramp up will be seen in the second half of the year, where the increased buying budget is committed. Now please move to slide 14 and our cash development for the year. The free cash flow was negative and in line with expectations. It's driven by the normal working capital seasonality, where we have significant payments of VAT, provisions, et cetera, and this was combined with an increase in inventory where we're building up for the spring-summer trading. On the bridge on the slide, you can see that the change from the same quarter last year, which is quite a representative quarter. The main difference is really related to exit tax payment in Sweden, CapEx increase due to the relocation of headquarters, and then a bit of a larger increase of inventory than what we had last quarter.
I want to mention also that our last 12 months free cash flow is SEK 754 million, so far above 100% cash conversion. Please move to slide 15. We ended the quarter with a cash position of SEK 239 million, and we also acquired shares for SEK 97 million in Q1. As such, we continue to have a very strong balance sheet, and we have financial room to maneuver as we take on commercial opportunities in the market. Today, we have also found the liquidity and space to initiate a new share buyback program of SEK 200 million that we are returning to our shareholders, and we will continue to be disciplined in our return of excess cash.
This completes my financial review, and I'll now turn to our outlook on slide number 17. I'll start out with some comments on the currency because this obviously had a relatively large impact due to the macro volatility, which had an impact on our main currencies, and particularly the NOK has appreciated against the SEK, supported by increasing oil prices. This has changed the expected FX impact on our financials for the year, and as such, we are increasing our EBIT margin guidance. In the first quarter of 2026, we still have the significant headwinds both on revenue and EBIT margin, but if we assume that the current exchange rates hold, then that effect is diminishing quite materially for the rest of the year. That will be visible in our reported gross margin and our reported EBIT margin already from March.
The full year impact is now expected to be around one percentage point negative on revenue growth and a small negative impact on EBIT margin. This is based on Riksbanken's fixing rates as of yesterday. By the end of Q1 2026, we have also hedged more than half of our NOK exposure. We found that the current levels are attractive compared to last year, although when we hedge, it did come with some implied costs because the forward rate is lower than the spot rate due to the interest rate difference between Norwegian krone and the Swedish krone. The hedging also means that our sensitivity on our EBIT margin and our profit is lower now, which makes our updated EBIT margin guidance relatively robust. Please go to slide 18 for the outlook of the underlying business.
As mentioned, the spring season has started well for us, and the business is progressing in line with plan. As we've said from the beginning of the year, we are targeting a growth acceleration during 2026, and we have an inventory buying plan and commercial initiatives lined up to deliver exactly that. With the current momentum, we therefore consider the higher end of the guidance range more likely, and on top of this, we also have almost one percentage point less negative impact from currency than what we expected in February. The EBIT margin guidance is upgraded by 30 basis points, which corresponds to almost SEK 30 million in absolute EBIT. With this, I'll now hand the word back to Hermann for some final remarks.
Thank you. Thank you, Michael. It has been a strong start to the spring/summer season, but we are far from claiming victory. The macro and consumer environment is uncertain, and our most important quarter of the year is still a long way off. For now, Boozt is in a stronger position than we have been for a long time. Consumers are responding, our inventory is excellent, and commercial initiatives are yielding results. Now it is up to us to work hard to build further momentum as we move into the summer months. This concludes our prepared part of the presentation, and we will now open up for questions. Operator, please.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Daniel Schmidt from Danske Bank. Please go ahead.
Yes, good morning, Hermann and Michael. Just a couple of questions from me. I clearly hear you when it comes to sort of the sales momentum that you are experiencing currently, especially for March and April. Of course, that builds confidence to take more risk on inventory, but you have done that before and misjudged the market. I think you mentioned a year ago that you came into 2025 with too high inventories in the hope that the market would pick up. What measures are you taking this time to not make that same mistake?
Well, experience is a good teacher, Daniel. Good morning. I think, if you noted that we've made quite a big change in our assortment strategy, buying more options, buying more breadth. I think that we became too cautious going into 2025, so buying more narrow or more depth. When you do that, you, of course, are relying on existing customers to basically buy more. By selling 40% more variants, and actually we didn't mention that during the presentation, but, we had 250,000 new customers, so the growth is very much driven by new customers. That gives us confidence that by changing our assortment strategy, and also we have also changed quite heavily in our marketing setup.
This gives us confidence that we are on the right track, and again, experience tells us that if we have too much stock, Booztlet is the best channel to clear that and get cash. That gives us confidence to take a bit more kind of risk, or fashion risk, or stock risk, you might say so. In general, our stock is too low at the moment, and if you don't have the stock, you don't sell anything, right? I think that kind of we are seeing that the actions we made end of last year and the beginning of this year, they are paying off.
What do you mean by significant ramp-up? What would that sort of entail in terms of inventory risk?
Well, we are talking about that we want to get back to double-digit growth in the second half. Probably, hopefully at the end of the year we see double-digit growth figures again. Of course, if you want to grow double digits, then you have to buy inventory for that. We are getting a higher inventory turnover, so we probably don't need to buy kind of much more than for the double-digit growth that we're expecting. We of course have to buy in advance, and we are adding something like 100 new brands in the second half as well as 35% new styles or new options. Of course we have to ramp up because we just don't have enough at the moment.
Okay. Just your comments on current trading, basically March and April are very upbeat. Is that you alone specifically, you think, given what you've done with the assortment being more aspirational in boozt.com offering? Or is it also the market that you are in general seeing a better momentum in?
In all modesty, I think it's quite company specific, because we don't see a tailwind with regards to the consumers. At best, the kind of the headwind that we've been facing over the last two, three, four, five years is still the same. We're seeing consumer confidence figures, actually in Denmark, going down last month. We're not seeing increasing headwind. Of course we're hoping for tailwind, but it's based on the things that we have done. As said before, when you launch 35% more options on the site and customers are buying 40% more variants and options, and you're getting more new customers than you have been getting for a long time, I think that tells a story that it's very much company specific what we're doing.
Is that given that you're sort of widening the offering and already done so, even though we didn't see this in this quarter when it comes to other revenues and you're right, timing effects, is that something that should drag along other revenues to pick up basically as we go into the coming quarters?
Yes.
Do they correlate, basically?
Yes.
Yeah. That sort of builds your confidence that that particular line will also pick up in the second half?
Yeah. It's baked into the EBIT guidance, yeah.
Are you also saying that when you say that there's not much quality inventory out there for the summer and spring season, that even though you are seeing a pickup, you can't expect too much in the near term in terms of growth when we look at Q2?
Yeah. That is why we are maintaining the revenue guidance. With Q1 being better than expected, then of course, it's more likely that we would end up in the high end of our guidance, but we just don't have enough stock for the first half of the year to grow faster than we have expected.
Yeah. Just a final question. When you talk about AI and the inventory capacity, you've seen additional 5%-10% inventory capacity at the warehouse through AI. How does that work? What have you done, basically?
Yeah. It's actually quite a complicated thing, but it has something to do with the stocking and the cross-stocking, because we have a bulk stock warehouse. It's about refilling and making the stock available when we need it. It's a long story, but when we have the transfer cells that have been introduced, made it possible for us to, I wouldn't call it just in time, but something similar that basically present the relevant stock to the warehouse.
Okay.
... when we need it for sale. These are, of course, tweaks because we need to start building more automation as we grow. That's within the plan. That's baked also into the CapEx that we're guiding on.
Yeah. Okay. Thanks. Thanks, guys.
Thanks, Daniel.
The next question comes from Erik Sandstedt from Kepler. Please go ahead.
Hi there. Thank you. Erik Sandstedt with Kepler Cheuvreux. Three questions, please. Firstly, in terms of the brands, you're adding a lot of new brands to the platform now, but could you just help us understand why some of these brands are coming on board now rather than earlier? Is this driven more by sort of improved acceptances from the brands or changes in your own proposition? I'm just a bit curious why so many brands are being onboarded now.
It's a good question. Of course, we have become a very big platform in the Nordics, and we have a lot of customers, I think something like 2.8 million customers over the last 12 months. If you want to sell fashion or apparel, et cetera, in the Nordics, it's difficult to kind of pass by us. Of course, we've tried to make a more clear distinction between Boozt and Booztlet, so making boozt.com a more mid to premium site, less discounting and more kind of premium. Of course, that means that brands are seeing it being more attractive to be on boozt.com. Also, when they see how we've been able to improve the customer experience, more inspiration, more guidance on the site, but it all adds up.
It has a lot to do with us being much more clearer on the profile of both Boozt and Booztlet.
Oh, that's interesting. Thanks. Then on marketing, I'm just wondering to what extent the Q1 margin improvement here is basically driven by lower Booztlet related marketing. You also talk about structural efficiency improvements and so forth. How should we think about this dynamic if inventory levels now build again? Will you need to market more, or is there a risk that you have sort of underinvested a bit in marketing in this quarter?
Yes. Thank you. This is Michael. We have invested exactly as we planned, but as you said, it is correct that we have spent less on Booztlet than what we did last year. The decline is mainly coming from Boozt in the first quarter. This was completely in our plan, so we have definitely not underinvested. We are also at a level in Q1, which is lower than we expect to be for the full year. As such, we do expect to ramp up as we get into a higher, more important trading seasons and potentially also increase our Booztlet if needed.
If I can chip in also, it's that if you don't have enough stock inventory, there's no reason to spend a lot of money on marketing. That's why we are very much data-driven on our marketing. We spend what is needed to attract the customers. That's why it's not a case of pumping the EBIT. It's just by being clever on marketing that we're doing this.
Another way to frame that is, are you mainly spending on marketing to sort of clear out stock, or are you not also just sort of building brand?
No, we're totally building brand, but of course, brand building has changed a lot over recent years. When it used to be offline media and TV is now across a lot of channels. We have become much better at getting return on our marketing investment.
Perfect. Thanks. Finally, on AI, you spoke about how that's sort of driving efficiencies, and I think you touched upon the revenue side as well. A bit curious specifically on agentic commerce. Is that an opportunity for you, or is it more a way to sort of mitigate risks and how the entire market is kind of changing how consumers are interacting with platforms and brands?
It's both. It's an opportunity if you embrace it, and it's a risk if you kind of discount it, right? You have to embrace it. It's still small, but of course you have to prepare for a future where agentic commerce might be big. Of course we are doing that and are putting a lot of resources, relevant resources. I think it's a given that you have to. It's a sales channel and where consumers buy. You have to be able to kind of accommodate that. We see this, yeah, again, opportunity if you embrace it, but a risk if you don't do that.
Perfect. Thank you very much.
Welcome.
The next question comes from Sebastian Grave from Nordea. Please go ahead.
Hi, Hermann and Michael. Thanks for taking my questions, and also congrats on what looks like a very encouraging start to the year. Hem, you say you're far from claiming victory at this point yet. You upgrade your growth guidance, or at least you indicate that you're going to end in the upper end after only a small Q1 quarter here. I guess in light of everything going on with energy prices and still low consumer confidence, you must be very confident with the new assortment strategy and happy with what you see here in April so far. Could you maybe, again, try to elaborate a bit on the dynamics here around introducing new premiumized assortment? What effects does it have on shopper behavior, engagement and potential spillover effects on the overall platform?
I guess what I'm asking is what provides you the comfort and confidence on H2 performance trending towards double-digit growth?
Good. Yeah. It's quite depressing to look outside the window, seeing wars in Ukraine and in the Middle East. Consumer sentiment or macros are not really helping. What gives us confidence is that the things that we are in control of, they seem to work. 2025 was a boring year, to be honest. It was a transition year where we did some cuts on staff. We announced a move. We had too much of, you could almost claim non-interesting inventory, especially for the women. We changed that and the learning, of course, and we knew that, is that women are the key because they are buying and they're buying the rest. If we're not attractive to the women's category, they will not shop also across categories.
This is why we did actually quite a big change to our assortment and said, "Okay, instead of buying deep and narrow," which is kind of, you tend to do when you get a bit conservative or cautious, then you just rely 100% on the data. It means that you end up buying the white and blue and black, et cetera. We said, "Okay, we'll provide more inspiration, take a bit more fashion risk on the edges," knowing that it probably will be the stuff that will be discounted end of season. Basically, showing more freshness and more inspiration. That has paid off. I think that the interesting KPI is that we have 35% more variants live but have sold 40% more. Apparently, inspiring a bit, inspires a lot and makes them buy more. It's kind of.
We have done that for the spring/summer and are doing that even further in the second half. That combined with our site and shopping experience, as well as our really strong marketing team, that gives us confidence that the things that we are in control of will make us come back to our double-digit growth. I know it was a long speech, but.
No.
I get really excited about it.
No, yeah. Thank you so much. If you look at the geographical performance, it appears that rest of the Nordics, ex-Norway, continues to be fairly sloppy. I suppose this is the Finnish market. What is your approach really to turn this around, and is it a priority at all here, or are you focused elsewhere at the moment?
Yeah. There's not much time to dig into the numbers, but if you notice boozt.com, we are growing quite well both in Sweden and Denmark. I think 7% in Sweden, 9% in Denmark, constant currency. I think that is some of the most encouraging numbers because our focus has been boozt.com. We have to get boozt.com. It's our premium brand, it's our flagship store, and getting good growth in those two countries, along with very strong growth in Norway, that gives us confidence. Finland, they are still cautious and probably still a bit concerned about their big neighbor to the east. That means that. Again, in Booztlet we haven't had the need to clear stock, so we have negative growth in Booztlet. I think it's something like 33% in Denmark reported.
I think the underlying numbers are quite positive for us because the changes that we've made start with boozt.com and Booztlet only steps in when we have excess inventory. All in all, we are also quite happy with the Nordics, to be honest.
Okay. What I hear you say is continue to build momentum in Sweden, Denmark and Norway and
Yeah
Wait for another day.
I think we will fix Finland as we get along.
Okay. My last question, I think maybe this is for Michael on the NOK appreciation. It looks like you're getting obviously some benefits here in 2026 as reflected in your margin guidance. However, it doesn't look like you're getting the full benefit from the recent NOK appreciation. I guess maybe you've been somewhat hedged here in the start of the year. Is it fair to assume a somewhat positive spillover into 2027 on the margins if the NOK remains at the current levels?
Thank you. Yes, that is correct, that we have done some hedging that implies some losses also because the forward rate is lower than the spot rate. There will be a little bit of a positive spillover into next year if current rates hold. It is relatively limited in sort of the 10-15 basis points area.
Okay, very clear. Great stuff. Thank you, guys.
Thank you.
The next question comes from Benjamin Wahlstedt from ABG Sundal Collier. Please go ahead.
Good morning. A couple of more, let's call it long-term questions, maybe. Your USD exposure is quite limited directly, but your suppliers are most likely paying for plenty of goods in USD. What have you heard in terms of pricing intentions for the autumn-winter assortment? Do you think lower USD rates will benefit Nordic consumers or, well, by extension, fashion volumes in the end, do you think? Or what are your thoughts about this?
The US dollar doesn't affect us on the autumn-winter because the buy has been done and the prices have been agreed upon. If they have any effect, that would be at the earliest for 2027.
Have you heard anything of the kind?
No.
Like any sort of pricing intentions for 2027?
No, not yet.
All right. Perhaps more of a bookkeeping question. Your D&A has been rather volatile in recent quarters. Could you say anything about what you see as a reasonable run rate assumption going forward?
Yes. Our D&A is going to be relatively stable also going forward. We have, as you know, because of the IFRS 16, we have the new headquarters, which is slightly higher. The last quarter was impacted by some one-offs. If you consider a little bit of increase compared to the run rate in 2025, then that is a good assumption for now.
All right. Up from the Q1 2026 level then?
Yes, exactly.
Yep. Perfect. I think that's all I have for now.
Thank you, Benjamin.
Thank you, Benjamin.
As reminder if you wish to ask a question please dial pound five on your telephone keypad.The next question comes from Daniel Schmidt from Danske Bank. Please go ahead.
Yes, just a follow-up on, I think you talked about it last quarter in terms of the sort of upgraded Club Boozt that you've been introducing should have some accounting effects on Q2. Am I right?
Yes. We mentioned that at the last call. We are still fine-tuning the concept, and we have not finalized the club benefits. We are in the testing right now, and we have the technical platform in place. It's critical for us to getting the calibration right before we launch. That is essential, and it's not something that is easy to unwind once we are live. I will also say that with the performance that we see right now, we are not in a rush to relaunch the club as it is, even though we will launch at some point in time this year. However, for Q2, you should not expect a sort of increase in depth from deferred revenue recognition from the club.
It's going to be postponed a bit?
Indeed. Yes.
Yeah. Okay. You don't know really when then, basically?
As I said, we are calibrating the benefits of the club, and that means that it may not be deferred revenue recognition, depending on how it launches exactly, because it's only if it's cash benefit directly that you have to reduce revenue. If you are launching the benefits in a different way, then you can actually avoid it, potentially. That is what we are considering right now.
Okay. It's still up for discussion. Okay. Thank you so much.
Thank you.
There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Thank you for joining the conference, and thank you for some very good questions. This concludes the webcast and the presentation, and I look forward to meeting you and engaging you over the next couple of weeks. Thank you very much, and have a good day.