Nelly Group (NELLY) Q2 2026 earnings summary

Executive summary

• Net revenue declined 4.3% year-over-year in Q2 2026, with operating margin dropping to 9.3% from 15.3% due to assortment planning issues and increased discounting.

• Operating profit was SEK 32.3 million, down from SEK 55.4 million in Q2 2025, reflecting lower sales and higher costs from growth investments.

• Own brand share rose to 64.1%, supporting profitability, especially in jeans, pants, and knitwear.

• Return rate improved to 27.7% from 28.4% last year, driven by product mix and ongoing focus on reducing returns.

• Management launched initiatives and committees to strengthen positioning, brand, and supply chain.

Financial highlights

• Net revenue for Q2 was SEK 346.3 million, down from SEK 361.7 million year-over-year; local currency decline was 5.8%.

• Gross profit was SEK 184.1 million (down 6.5%), with gross margin at 53.2% (down from 54.5%).

• Operating expenses increased, with higher marketing and admin costs due to investments in brand, personnel, and expansion.

• Operating cash flow was SEK 99 million, slightly down from SEK 104.1 million last year.

• Cash balance at quarter-end was SEK 300.6 million, up 15.8% year-over-year; equity ratio improved to 42.7%.

Outlook and guidance

• Corrective actions in assortment planning underway, with focus on data-driven buying and disciplined execution.

• Autumn and winter season expected to benefit from stronger categories, but some impact from H1 misses will persist.

• Management expects gradual effects from ongoing improvements in assortment, brand, and processes.

• Strategy remains focused on customer-centricity, curated brand mix, and disciplined execution.