Nelly Group (NELLY) Q4 2025 earnings summary

Executive summary

• Achieved 16.4% net revenue growth year-over-year in Q4 2025 to SEK 370.5 million, with operating profit rising to SEK 47.8 million and margin improving to 12.9%, despite a challenging, price-sensitive market and intense discounting.

• Full year 2025 net revenue increased 15.5% to SEK 1,263.6 million, operating profit more than doubled to SEK 166.4 million, and operating margin reached 13.2%.

• Active customer base in the Nordics grew for the fifth consecutive quarter, reaching 1,029,000, with higher conversion rates but lower average order value due to discount dependency.

• Own brand share increased to 62.1% in Q4, up from 47.2% year-over-year, with strong performance in jeans, sneakers, and knitwear.

• Maintained historically low return rate at 22.8%, down from 27.9% year-over-year.

Financial highlights

• Q4 net revenue was SEK 370.5 million, up from SEK 318.4 million; full year net revenue reached SEK 1,263.6 million.

• Q4 operating profit was SEK 47.8 million (up from SEK 36.2 million), with an operating margin of 12.9% (vs. 11.4%).

• Full year operating profit reached SEK 166.4 million, operating margin 13.2% (vs. 8.5% prior year).

• Q4 profit after tax was SEK 58.3 million, EPS SEK 1.94; full-year profit after tax was SEK 168.5 million, EPS SEK 5.62.

• Cash and cash equivalents at year-end were SEK 253.8 million, up from SEK 196.9 million, with no external credit facilities utilized.

Outlook and guidance

• Market conditions expected to remain tough in the near term, with fierce competition and high discounting.

• Strategy remains focused on curated assortment, brand building, and disciplined execution, with targeted growth in Denmark and Germany.

• No specific growth or profitability guidance provided for 2026.

• Efforts in 2026 will target further category growth and maintaining close alignment with fashion trends.