Sweden's Nelly Q3 revenue rises on promotional activity

By Reuters News


Overview

  • Sweden online fashion retailer's Q3 revenue rose 10.3% yr/yr, gross margin declined slightly

  • Operating profit and net income fell compared to prior year

  • Company completed SEK 30 mln share buyback; CEO and CFO departures announced during quarter


Outlook

  • Company did not provide specific financial guidance for the current or coming quarters in the press release


Result Drivers

  • PROMOTIONAL ACTIVITY - Gross margin declined mainly due to increased promotional activity, as company used deeper discounting to drive sales

  • HIGHER MARKETING SPEND - Growth required increased marketing investment, with marketing costs as a share of net revenue rising to 10.0% (9.4%)

  • ASSORTMENT MIX - Autumn assortment converted better but was not sufficiently compelling on its own, requiring higher discounting and marketing spend


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

SEK 313.10 mln

Q3 EPS

SEK 1.02

Q3 Net Income

SEK 30.60 mln

Q3 Gross Margin

56.50%

Q3 EBIT

SEK 42.40 mln

Q3 EBIT Margin

13.50%


Analyst Coverage

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 22 - Sweden's Cdon Q3 GMV rises 18%, sales up 3%

  • Oct 20 - UK's Gear4music H1 revenue rises 6%, gross margin slips

  • Oct 22 - Sweden's Axfood Q3 EBIT beats on volume growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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