Nelly

Q3 2025 – Financial highlights
• Net revenue was SEK 283.7 (239.6) million, corresponding to a rise of 18.4% (1.4%)
• Gross profit was SEK 161.2 (130.7) million, corresponding to a gross margin of 56.8% (54.5%)
• Operating profit was SEK 43.3 (25.1) million, corresponding to an operating margin of 15.3% (10.5%)
• Profit after tax was SEK 41.5 (22.3) million, corresponding to earnings per share of SEK 1.38 (0.74)
• Cash flow from operating activities was SEK -18.5 (-18.5) million
• Cash and cash equivalents as at 30 September amounted to SEK 226.7 (160.4) million, with credit facilities unutilised

9M 2025 – Financial highlights of the first nine months of the year
• Net revenue was SEK 893.1 (775.9) million, corresponding to a rise of 15.1% (2.2%)
• Gross profit was SEK 486.0 (411.7) million, corresponding to a gross margin of 54.4% (53.1%)
• Operating profit was SEK 118.6 (57.0) million, corresponding to an operating margin of 13.3% (7.3%)
• Profit after tax was SEK 110.3 (47.1) million, corresponding to earnings per share of SEK 3.68 (1.57)
• Cash flow from operating activities was SEK 72.3 (82.8) 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

High growth and solid profitability in the third quarter
Nelly delivered a strong third quarter with continued solid growth and profitability, while at the same time further solidifying the brand’s position in the market. Net revenue increased by 18.4% (1.4%) to SEK 283.7 (239.6) million. Operating profit improved to SEK 43.3 (25.1) million, corresponding to an operating margin of 15.3% (10.5%). So far in 2025, we have thereby achieved net revenue growth of 15.1% (2.2%), with an improved operating margin compared to last year of 13.3% (7.3%) – a result of our consistent focus on expanding the profitable core business.

Growing customer base and a more attractive brand position, driven by our assortment
In addition to the strong financial performance in the third quarter, it is pleasing that more and more customers are now discovering Nelly, and that the brand is gaining traction. New customer acquisition accelerated further, more customers returned to make another purchase, and the number of active customers grew for the fourth consecutive quarter. Online traffic increased by 9.9% year-on-year, driven by more effective marketing, and the number of orders rose by 20.2%. Our regular brand tracking also shows a continued positive trend, with a growing share of the target audience now naming Nelly as their favourite store.

Several key success factors contributed to the positive development during the quarter, most notably our attractive and relevant assortment, which drove both growth and brand repositioning. The share of sales from Nelly’s own brands increased to 62.2% (45.2%), while the external brand portfolio was further strengthened during the spring and summer season with new international names such as Puma and One Teaspoon. During the quarter, we drove significant growth particularly within the jeans and sneakers categories, in which Nelly now offers a, for the target audience, leading assortment, combining our own products with the best global brands. Knitwear, pants and shoes also grew in sales and going forward, we see more potential in these categories. Overall, the performance of our assortment improved yet again year-on-year, with a higher gross margin of 56.8% (54.5%) and a lower return rate of 26.1% (27.1%).

Long-term ambitions with targeted growth initiatives
With enduring high ambitions for profitable growth, we are now working on a number of targeted initiatives where we see potential to expand Nelly’s position. The assortment continues to be the most important growth driver in our business, and we are therefore further refining several key categories, including jeans and sneakers, with upcoming brand launches for Diesel and Nike to elevate the attractiveness of the offering. Nelly furthermore has a clear opportunity to take a leading position within categories such as knitwear, tops and pants, reinforcing our role as the go-to fashion destination for our target audience.

Alongside further refining the assortment, we are investing in expanding Nelly’s presence in markets with strong growth potential. The opening of a second flagship store in early October – this time on Strøget in central Copenhagen – is part of this initiative, aimed at increasing brand awareness and solidifying our positioning in Denmark and internationally. The Nordics will remain our core market, but we also see significant growth opportunities beyond the Nordics – with Germany as the next focus. Expanding our presence in Germany is a long-term effort that will require both investment and time, but we are confident that Nelly’s customer offering has broad appeal in this market as well.

I would once again like to conclude with a truly heartfelt thank you – to all our amazing customers who inspire us to constantly raise the bar, and to the entire Nelly team who work tirelessly every day to create the best possible experience for our customers. I look forward to taking Nelly to new heights together with all of you.

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 Q3 on 23 October 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.

Link to the webcast: https://nelly.videosync.fi/2025-10-23-q3

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: 5002583#
User ID: 12897#