Q3 2024 Nelly Group AB (publ) Earnings Call Transcript
Key Points
- Net revenue grew by 1.4% to SEK239.6 million, indicating progress towards a healthier business.
- Own brand share increased to 45.2% from 39.4% last year, strengthening Nelly Group AB's market position.
- Return rates improved significantly to 27.1% from 34.3% last year, enhancing customer satisfaction and reducing costs.
- Gross margin improved to 54.5% from 50.7% last year, driven by a focused assortment strategy and better buying decisions.
- The flagship store in Stockholm delivered its strongest performance to date, contributing positively to sales.
- Total number of orders in the Nordics decreased by 10.4%, indicating challenges in market demand.
- Conversion rate declined to 1.8% from 2.1% last year, affected by a tough market and stock issues.
- Marketing costs increased to 9.9% of net revenue from 8.9% last year, impacting overall profitability.
- Cash flow from operations was negative SEK18.5 million, compared to negative SEK13.9 million last year.
- The company faced out-of-stock issues on popular styles, affecting potential sales during the quarter.
Thank you very much and welcome to the 2024 third quarter investor presentation Nelly Group.
My name is Helena Karlinder-Ãstlundh and I'm the CEO of Nelly Group and I'm cohosting today's call together with Niklas Lingblom CFO for Nelly Group.
Today's call will be divided into three parts. We will start with a short video to introduce the Nelly business, which will also include a little bit of information about our history and some key stats.
We will then focus on the third quarter and provide both an operational and a financial update. So I will provide some comments on the quarter and we will also receive a financial summary from Niklas.
And as usual, we will then conclude with a question and answer session. And at this point, I would like to remind you as usual that you are very welcome to send us your questions at any point during today's call.
So let's kick off with a short video introducing the Nelly business.
Now let's move on to have a closer look at Nelly's third quarter performance net revenue grew by 1.4% to SEK239.6 million crowns and we
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