Q2 2025 – Financial highlights
Net revenue was SEK 361.7 (314.1) million, corresponding to a rise of 15.1% (8.8%)
Gross profit was SEK 196.9 (171.9) million, corresponding to a gross margin of 54.5% (54.7%)
Operating profit was SEK 55.4 (30.5) million, corresponding to an operating margin of 15.3% (9.7%)
Profit after tax was SEK 52.4 (26.7) million, corresponding to earnings per share of SEK 1.75 (0.89)
Cash flow from operating activities was SEK 104.1 (105.8) million
Cash and cash equivalents as at 30 June amounted to SEK 259.6 (189.9) million, with credit facilities unutilised

H1 2025 – Financial highlights
Net revenue was SEK 609.4 (536.3) million, corresponding to a rise of 13.6% (2.6%)
Gross profit was SEK 324.8 (281.1) million, corresponding to a gross margin of 53.3% (52.4%)
Operating profit was SEK 75.3 (31.9) million, corresponding to an operating margin of 12.4% (5.9%)
Profit after tax was SEK 68.8 (24.8) million, corresponding to earnings per share of SEK 2.29 (0.83)
Cash flow from operating activities was SEK 90.9 (101.2) million

Material events during the quarter
No material events were reported during the quarter

Material events after end of quarter
No material events have been reported since the end of the quarter.

Accelerated growth and improved profitability in the second quarter
Nelly reported both higher growth and improved profitability in the second quarter compared to the same quarter in the previous year. Net revenue increased by 15.1% (8.8%) to SEK 361.7 (314.1) million. Operating profit rose to SEK 55.4 (30.5) million, corresponding to an operating margin of 15.3% (9.7%). This positive trend was also reflected in the half-year result, with net revenue increasing 13.6% (2.6%) and operating profit rising to SEK 75.3 (31.9) million.

A growing customer base driven by the right assortment and marketing activities
The favourable development we have seen in the customer base over recent quarters was sustained. Online traffic rose by 8.5% compared to the previous year and the number of orders increased by 14.3%. Continued strong new customer acquisition, combined with an improved repurchase rate, resulted in the number of active customers increasing for the third consecutive quarter. This confirms that our customer offering is attractive and that more effective marketing activities are delivering results.

The 2025 spring and summer collection has performed well, with improvements across several areas, particularly during the second quarter. Priority categories such as jeans, tops, and knitwear accounted for a significant share of the growth, while the return rate improved once again to 28.4% (31.3%), driven by the cross-functional return strategy we continue to implement. The share of sales from Nelly’s own brands increased to 54.8% (43.8%), while we also achieved strong growth across many of our external brands. It is worth highlighting that the link between increased sales of our own brands and improved gross margin, which we have historically seen, was not as pronounced in the second quarter. This was due mainly to a deliberate decision to maintain attractive and dynamic pricing for our customers despite higher production costs particularly in Turkey as well as quality improvements we have made on several of our bestselling products. As a result, gross margin decreased slightly in the second quarter to 54.5% (54.7%).

The strong assortment and growing customer base also enabled further improvements in our customer communication during the second quarter. Marketing costs as a proportion of net revenue decreased to 10.0% (13.0%), and profitability per order improved compared to the previous year. We continued to invest in our social channels to strengthen the Nelly brand and build long-term customer loyalty. A larger share of the total advertising budget was allocated to these platforms, and we increased organic content to continuously drive engagement and traffic.

Continued focus on creating a truly differentiated customer experience
The positive customer response we have received is pleasing and gives us confidence that we need to continue to create an even more differentiated and attractive offering. Despite the strong growth that has already been achieved in Nelly’s own brands, there is still significant potential to establish our position in more categories, thereby also expanding average basket size. In parallel, we continue to refine our external brand portfolio and will launch several new partnerships with well-known international brands going forward. Alongside these initiatives, we announced at the end of the second quarter that our store concept, which has been so successful in Stockholm, will expand to Denmark this autumn with a flagship store on Strøget, Copenhagen’s busiest shopping street. We have an exciting autumn ahead of us.

As always, I would like to conclude with a heartfelt thank you – to all our incredible customers, both new and returning, and of course to the entire Nelly team. I never cease to be impressed by the creativity, talent, and dedication I’m surrounded by every day, and I’m proud of everything we have achieved together.

Helena Karlinder-Östlundh,
CEO Nelly Group AB

Nelly Group AB (publ)
Box 690
501 13 Borås, Sweden
Corp. ID 556035-6940
Registered office: Borås
Visiting adress: Lundbygatan 1, Borås

Webcast on the interim report
Analysts, investors and the media are invited to a webcast on Q2 on 15 July at 09:00 CEST. The presentation will be given in English by Helena Karlinder-Östlundh, CEO, and Niklas Lingblom, CFO. The webcast will be made available on the Nelly Group website.

Länk till webbsändningen: https://nelly.videosync.fi/2025-07-15-q2

To listen to the presentation by phone, the following callin details are available:

Finland: +358 9 4245 0972
Sweden: +46 8 525 07003
United Kingdom: +44 20 7043 5048
United States: +1 (774) 450-9900
 
Conference ID: 5001912#
User ID: 85201#