Q1 2026 Nelly Group AB (publ) Earnings Call Transcript
Key Points
- Nelly Group AB (FRA:CD20) achieved a gross margin improvement to 55.3%, up 3.7 percentage points from the previous year.
- Sales from Nelly's own brands increased to 62.7%, up 12.6 percentage points year on year.
- The company's expansion in Germany contributed positively to the active customer base growth.
- Nelly Group AB maintained a healthy balance sheet with an equity ratio of 42.9% and a net cash position of 215 million SEK.
- The flagship store in Copenhagen is generating valuable insights into the Danish market and customer behavior.
- Net revenue decreased by 1.8% to 243.3 million SEK, with a significant drop in operating margin from 8% to 3.3%.
- The company faced challenges in attracting new customers, with a decline in online traffic and conversion rates.
- Return rates increased to 27.3%, driven by current fashion trends and higher returns in the German market.
- Marketing costs rose due to increased spending on paid advertising, impacting the overall cost base.
- The assortment failed to resonate with customers, particularly in key categories like tops and knits, leading to lower sales.
Welcome to Nelly Group First Quarter Report 2026.
Today, I am pleased to present Chief Executive Officer Helena Karlinder Ãstlundh and Chief Financial Officer Josefin Dalum.
After the presentation, there will be a question-and-answer session.
Operator Instructions
Now I will hand over to Helena Karlinder Ãstlundh. Please go ahead.
Thank you very much. Good morning, everyone, and welcome to the Quarter 1 2026 investor presentation for Nelli Group. My name is Ileana Helena Karlinder Ãstlundh, and I'm the CEO of Nelly Group, and I'm hosting today's call together with Josefin Dalum, our CFO here at Nelly Group.
Now, let me start by giving you a brief overview of what we will be covering in today's call. First off, we will start with a short video introducing you to the Nelly business.
I will then provide some comments on the first quarter of 2026 before handing over to Josefin, who will provide us with a financial summary.
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