Nelly Group (NELLY) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 10.3% YoY to SEK 313.1m; operating profit eased to SEK 42.4m and profit after tax fell to SEK 30.6m as promotional activity and operating expenses increased.

• For 9M, revenue increased 1.1% to SEK 902.6m, while operating profit fell to SEK 82.7m from SEK 118.6m and profit after tax to SEK 66.0m from SEK 110.3m.

• Transformation priorities include sharper assortment relevance and brand positioning, faster trend response, stronger execution and profitable growth.

Financial highlights

• Q3 revenue growth was 8.9% in local currencies versus reported growth of 10.3%; FX supported reported growth.

• Q3 gross profit rose to SEK 177.0m from SEK 161.2m; gross margin was 56.5% versus 56.8%.

• Operating expenses increased SEK 16.6m YoY; operating profit was SEK 42.4m versus SEK 43.3m, and operating margin was 13.5% versus 15.3%.

• 9M gross profit was SEK 495.6m versus SEK 486.0m; gross margin was 54.9% versus 54.4%, and operating margin was 9.2% versus 13.3%.

• Q3 EPS was SEK 1.02 versus SEK 1.38; 9M EPS was SEK 2.20 versus SEK 3.68.

Outlook and guidance

• Q4 priorities are disciplined promotional sell-through and entering 2027 with healthy, salable inventory; promotional activity is seasonally high across the market.

• Ongoing priorities include stronger assortment appeal, refined Nordic brand positioning, organic traffic and new-customer recruitment; Germany investment will proceed at a controlled pace.

• Profitable growth remains the guiding priority; capital allocation favors profitable investment and a solid balance sheet before excess capital returns.

• Search for CEO and CFO successors is underway; the CEO will remain until a successor starts, but step down by 5 February 2027 at the latest.