Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Q1 2025 Earnings Presentation
21 slides from Nelly Group Ab's earnings presentation, Apr 24, 2025
Slide 1: Nelly Group Investor Presentation Q1 2025
Nelly Group INVESTOR PRESENTATION Q1 2025 24 April 2025
Slide 2: Nelly Group Q1 2025 Presentation
Nelly Group Q1 2025 Presentation Helena Karlinder-Östlundh Niklas Lingblom CEO CFO ir@nelly.com www.nellygroup.com
Slide 3: Agenda
Agenda • This is NELLY • CEO’s comments on Q1 2025 • Financial summary • Q&A
Slide 4: CEO's comments Q1 2025
CEO’s comments Q1 2025 • A strong first quarter • Continued focus on growth & efficiency
Slide 5: A strong first quarter
A strong first quarter • Historically the most challenging quarter • Net revenue growth 11.5% • Operating margin 8.0% • 8 profitable quarters & 4 with net revenue growth
Slide 6: Improved gross margin
A strong first quarter Improved gross margin Gross margin (%) 60% 55% 55% • 51.6% (49.1%) 55% 53% 51% 52% 50% 49% 49% 50% 45% 41% • Growth in own brand share 40% 35% 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Less need for outlet-driven sales 2023 2023 2023 2023 2024 2024 2024 2024 2025 • Balanced end-of-seas
Slide 7: Growth in own brand share
A strong first quarter Growth in own brand share Own brand share (%) 55% 50% • 50.1% (39.9%) 50% 47% 45% 45% 44% 41% 40% 39% 40% • Jeans & tops particularly strong 36% 36% 35% 30% • Central to our Stockholm flagship store Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 2024 2024 2024 2025 • Impr
Slide 8: Continued return rate benefits
A strong first quarter Continued return rate benefits Return Rate (%) 43% • 24.8% (33.4%) 38% 38% 38% 34% 33% 33% 33% 31% 28% • Strong assortment 27% 28% 25% 23% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 • Continued cross-functional strategy • Positive impact of physica
Slide 9: Efficient & profitable marketing
A strong first quarter Efficient & profitable marketing • 9.9% (9.6%) of net revenue • Growth in traffic & orders • Positive development in new customers & active customers • Improvements in organic & paid
Slide 10: Efficient warehousing & distribution
A strong first quarter Efficient warehousing & distribution Warehousing and distribution costs as a proportion of net revenue(%) • 12.2% (14.6%) 20% 18% 19% 18% 17% 17% 16% 15% 15% 14% 15% 13% • Continuous improvement in operations 14% 13% 13% 12% 12% 12% 11% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Optimis
Slide 11: Continued focus on growth & efficiency
Continued focus on growth & efficiency Elevating the customer experience • Continue evolving own brands • New brand launches • Unique collaborations • NELLY Flagship store & events
Slide 12: Continued focus on growth & efficiency
Continued focus on growth & efficiency • Bring handling of returns in-house • Complete remainder of IT-systems changes
Slide 13: CEO's comments Q1 2025
CEO’s comments Q1 2025 • A strong first quarter • Continued focus on growth & efficiency
Slide 14: Agenda
Agenda • This is NELLY • CEO’s comments on Q1 2025 • Financial summary • Q&A
Slide 15: Strong growth in the first quarter
Strong growth in the first quarter Net revenue (SEK million) 350 300 314 318 302 289 +11,5% 250 248 240 234 236 222 200 150 100 50 0 Q1 Q2 Q3 Q4 2023 2024 2025
Slide 16: Consistent profitability and a solid improvement in Q1
Consistent profitability and a solid improvement in Q1 Operating profit/loss (SEK million) and Operating margin (%) 40 36 20% 30 30 25 15% 24 20 20 10% 13 10 8 5% 1 0 0% -10 -5% -20 -10% -30 -15% -34 -40 -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 2024 2024 2024 2025
Slide 17: Sustained growth in Operating profit
Sustained growth in Operating profit Operating profit/loss LTM (SEK million) and Operating margin LTM (%) 140,0 20% 120,0 112 100,0 93 15% 81 80,0 69 10% 60,0 46 40,0 5% 20,0 11 0,0 0% -20,0 -15 -40,0 -5% -40 -60,0 -80,0 -66 -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 2024 2024 2024 202
Slide 18: Q1 2025 – Income statement
Q1 2025 – Income statement (SEK million) Q1 25 Q1 24 Net revenue 247.8 222.2 Gross profit 127.8 109.1 +18.7 Gross margin 51.6% 49.1% Warehousing and distribution costs -30.3 -32.4 +2.1 Marketing costs -24.4 -21.3 -3.1 Admin and other operating expenses -53.1 -54.1 +0.9 Operating profit 19.9 1.4 +18.
Slide 19: Q1 2025 – Additional financial KPIs
Q1 2025 – Additional financial KPIs Cash flow from operations (SEK million) Healthy balance sheet 120 100 106 77 72 80 60 50 • Improved Equity ratio 40 20 0 • Inventory build-up ahead of Q2 -20 -5 -13 -14 -19 -40 -60 • Investments in IT infrastructure -80 -54 Q1 Q2 Q3 Q4 2023 2024 2025
Slide 20: Q&A
Q&A
Slide 21: Thanks!
Thanks!