Nelly Group (NELLY) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 increased by 15.1% to SEK 361.7 million, with operating profit up to SEK 55.4 million and operating margin rising to 15.3%, despite a challenging and volatile market environment.

• Growth was driven by higher online sales, increased own brand share to 54.8%, improved return rates, and active customer growth for the third consecutive quarter.

• Marketing costs as a proportion of revenue fell to 10.0%, and warehousing/distribution costs improved to 11.8% of revenue.

• Cash and cash equivalents at period end were SEK 259.6 million, with no credit facilities utilized.

• Own brand share increased, with strong performance in jeans, tops, dresses, and knitwear.

Financial highlights

• Net revenue: SEK 361.7 million in Q2 2025 (up 15.1% year-over-year); H1 2025: SEK 609.4 million (+13.6%).

• Operating profit: SEK 55.4 million (up from SEK 30.5 million), with a record operating margin of 15.3%.

• Gross profit: SEK 196.9 million, gross margin 54.5% (compared to 54.7% last year).

• Marketing costs decreased to SEK 36.2 million (10% of net revenue, down from 13%).

• Operating cash flow: SEK 104.1 million, net cash flow: SEK 87.1 million; equity ratio improved to 33.5%.

Outlook and guidance

• Focus on expanding own and external brand categories, with new brand launches and flagship store opening in Copenhagen planned.

• Margin structure expected to remain stable, with ongoing optimization between gross margin and customer offer.

• Marketing spend will remain dynamic, managed for profitability rather than fixed as a percentage of revenue.

• Continued investments in social channels and customer experience to drive engagement and loyalty.