Q2 2026 Nelly Group AB (publ) Earnings Call Transcript
Key Points
- Nelly Group AB (FRA:CD20) maintained profitability in the first half of 2026 despite softer sales, indicating a stronger foundation than in the past.
- The company's own-brand share increased significantly to 64.1% in Q2, up from 54.8% last year, contributing positively to the gross margin.
- Return rates improved to 27.7% in Q2 from 28.4% in the same quarter last year, driven by a favorable product mix.
- The customer base in Germany showed growth, indicating early traction in the market.
- Nelly Group AB (FRA:CD20) has a strong cash position, with a cash balance of SEK300.6 million at the end of June, up 15.8% from the previous year.
- Net revenue decreased by 4.3% in Q2, with a decline in the Nordic markets due to assortment precision issues, particularly in tops and dresses.
- Operating margin fell to 9.3% from 15.3% in the same quarter last year, impacted by deeper discounting to drive sell-through of spring and summer assortments.
- Average order value in the Nordics decreased by 5.2%, and the number of orders fell by 3.8%.
- The company faced challenges with assortment planning and buying, leading to insufficient stock depths on best-selling products.
- Higher operating expenses, including increased marketing costs and personnel costs for the Copenhagen store, weighed on profitability.
Welcome to Nelly Group second quarter report 2026. Today I am pleased to present CEO, Helena Karlinder-Ostlund and CFO, Josefin Dalum. (Operator Instructions) Participants are able to ask questions in written form on the AudioCast page.
Now I will hand over to Helena Karlinder-Ostlund, please go ahead.
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Good morning, everyone, and welcome to Nelly Group's results call for the second quarter of 2026. My name is Helena Kalinder-Estlund, and I'm the CEO of Nelly Group. And I'm joined today by our CFO, Josefin Dalum. Let me start today's call with a short walkthrough of our agenda before we get into the specifics of the second quarter.
So we will begin today's presentation with a short introduction to the MELI business in the form of a video. I will then give my comments on the second quarter, after which Josefin will take you through the financial summary. We will finish with your questions. And as always, you are very
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