Nelly Group (NELLY) investor relations material

Executive summary

• Achieved strong Q2 results with 15.1% net revenue growth and improved profitability, despite a challenging market environment.

• Active customers increased for the third consecutive quarter, driven by effective recruitment and improved repurchase rates.

• Own brand share rose to 54.8%, supporting performance in key categories like jeans, tops, dresses, and knitwear.

• Maintained a low return rate through cross-functional strategies and efficient replenishment.

• Focus remains on expanding flagship stores, launching new collaborations, and capturing further growth potential.

Financial highlights

• Net revenue grew 15.1% year-over-year to SEK/NOK 361.7 million in Q2 2025.

• Operating profit reached SEK/NOK 55.4 million, up from 30.5 million last year; margin improved to 15.3% from 9.7%.

• Gross margin was 54.5%, slightly down from 54.7% year-over-year, impacted by pricing and currency effects.

• Marketing costs as a share of net revenue decreased to 10% from 13% last year; online traffic grew 8.5%, orders up 14.3%.

• Cash and cash equivalents at period end were SEK/NOK 259.6 million, with a solid equity ratio of 33.5%.

Outlook and guidance

• Plans to expand into additional categories, refine the external brand portfolio, and launch new collaborations.

• Flagship store concept to be expanded to Copenhagen in autumn 2025, with own brand central to the offering.

• Continued focus on optimizing pricing, assortment, marketing, and customer experience based on market conditions.