Q4 2025 – Financial highlights
• Net revenue was SEK 370.5 (318.4) million, corresponding to a rise of 16.4% (5.5%)
• Gross profit was SEK 200.0 (169.7) million, corresponding to a gross margin of 54.0% (53.3%)
• Operating profit was SEK 47.8 (36.2) million, corresponding to an operating margin of 12.9% (11.4%)
• Profit after tax was SEK 58.3 (36.3) million, corresponding to earnings per share of SEK 1.94 (1.21)
• Cash flow from operating activities was SEK 50.8 (71.8) million
• Cash and cash equivalents amounted to SEK 253.8 (196.9) million as at 31 December and external credit facilities were unutilised

2025 – the year in brief
• Net revenue was SEK 1,263.6 (1,094.3) million, corresponding to a rise of 15.5% (3.2%)
• Gross profit was SEK 686.0 (581.4) million, corresponding to a gross margin of 54.3% (53.1%)
• Operating profit was SEK 166.4 (93.1) million, corresponding to an operating margin of 13.2% (8.5%)
• Profit after tax was SEK 168.5 (83.4) million, corresponding to earnings per share of SEK 5.62 (2.78)
• Cash flow from operating activities was SEK 123.1 (154.5) 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

Improved result for the quarter and the full year
The fourth quarter concluded the year with a solid result, with both growth and profitability improving, despite a periodically challenging market characterised by high discount intensity. Net revenue grew by 16.4% (5.5%) to SEK 370.5 (318.4) million. The gross margin improved slightly to 54.0% (53.3%), contributing to operating profit of SEK 47.8 (36.2) million and an operating margin of 12.9% (11.4%). Looking at the year as a whole, 2025 also delivered a positive result. Net revenue increased by 15.5% (3.2%) to SEK 1,263.6 (1,094.3) million, and operating profit amounted to SEK 166.4 (93.1) million, corresponding to an operating margin of 13.2% (8.5%).

The progress made during the year was enabled by the strategy we have consistently pursued. Our focus has been on building an attractive assortment that combines own brands with a curated selection of international brands, thereby positioning Nelly as a destination for relevant and accessible everyday fashion. In addition, the business has been operated according to stringent profitability requirements. These priorities will continue to form the cornerstones of the business going forward, while the need for precision and disciplined execution increases. The most critical element remains ensuring that the assortment aligns with customer fashion demand, which over time will result in gross margin fluctuations due to both the mix between own and external brands and the performance of different categories.

Growth in the customer base, but a price sensitive market
During the fourth quarter, we saw a further increase in interest in Nelly, and the active customer base grew. The number of new customers rose and more customers returned, indicating that both our offering and the customer experience were well received. Online traffic in the Nordics was in line with the corresponding quarter of the previous year, while the conversion rate improved slightly and the number of orders increased by 9.3%.

In parallel, we encountered a markedly more price-sensitive customer during the fourth quarter who, to a greater extent than before, opted for more affordable alternatives and placed fewer items in their shopping baskets, resulting in a lower average order value. Against this backdrop, higher marketing intensity and higher discount levels than in the previous year were required to address both the heightened price sensitivity and an initially mild winter. These measures drove traffic and resulted in strong sell-through of the autumn and winter assortment, though with a negative impact on gross margin. Looking ahead, it remains crucial to also win the more cautious customer, with the objective of building the basket through more products and categories per purchase.

Despite there still being significant room for improvement, we can conclude that several key categories, including jeans, sneakers and knitwear, developed positively during the fourth quarter. The share of sales from Nelly’s own brands increased to 62.1% (47.2%), and the return rate amounted to 22.8% (27.9%), which is a very low level. During 2026, efforts will be focused on growing across more categories through further strengthening category expertise and staying very close to the trends that are most relevant to our target audience.

A clear direction for long-term development
We enter 2026 with a well-defined direction for our assortment strategy, while continuing to build the Nelly brand and increasing its impact among our target audience. A central part of this work will be to further strengthen and broaden the portfolio of external brands in order to differentiate the offering. In addition, significant potential remains across all of Nelly’s core markets, not least in Denmark, where our flagship store on Strøget provides valuable insights into the Danish customer, and in Germany, where a number of controlled and targeted initiatives are ongoing. Nelly is now in its next phase of development, where high expectations for operational precision and continuous improvement provide the foundation for stable and profitable growth over time.

Finally, I would like to sincerely thank all our customers who choose Nelly, as well as the entire Nelly team, whose commitment and drive are essential to the continued evolution and success of the business.

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 year-end report 2025
Analysts, investors and the media are invited to a webcastpresentation of Q4 on 10 February at 9 a.m. 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.

Note: It is only possible to ask questions in writing (not by phone). To submit questions you want answered after the presentation, please use the link below. It is possible to submit written questions both before and during the broadcast.

Link to webcast: https://nelly.videosync.fi/2026-02-10-q4

To listen to the presentation by phone, the following call-in 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: 5002423#
User ID: 69676#