Q2 2025 Nelly Group AB (publ) Earnings Call Transcript
Key Points
- Nelly Group AB (FRA:CD20) reported a strong second quarter with net revenue growth of 15.1%, reaching SEK361.7 million.
- Operating margin increased significantly to 15.3% from 9.7% in the same period last year, highlighting improved profitability.
- The company achieved its third consecutive quarter of active customer growth, driven by effective new customer recruitment and improved repurchase rates.
- Nelly's own brand share grew to 54.8%, contributing positively to the company's performance across various product categories.
- Marketing activities were efficient, with costs as a proportion of net revenue decreasing to 10% from 13% last year, while online traffic and order numbers increased.
- Despite the growth, the average order value decreased by 6.8%, driven by lower average item value and fewer items per order.
- The gross margin slightly decreased to 54.5% from 54.7% last year, due to maintaining attractive pricing amidst cost pressures.
- Currency effects negatively impacted growth rates, particularly due to the depreciation of the Norwegian krone.
- Inventory levels were slightly elevated compared to the same period last year, raising concerns about potential overstocking.
- The return rate, although improved, remains a focus area, with a need for continuous efforts to manage and reduce unnecessary returns.
Welcome to Nelly Group's second quarter report 2025. Today, I am pleased to present CEO, Helena Karlinder-Ostlundh, and CFO, Niklas Lingblom. (Operator Instructions)
Now I will hand over to Helena Karlinder-Ostlundh. Please go ahead.
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Thank you very much, and a very warm welcome to the second quarter results call for Nelly Group. My name is Helena Karlinder-Ostlundh, and I'm the CEO of Nelly Group, and I'm hosting today's call together with my colleague, Niklas Lingblom, who is our CFO here at Nelly Group.
Today's call will be divided into four parts. We will start with a short video to introduce Nelly. Before I will then provide some comments on the second quarter of 2025. I will then hand over to Niklas, who will provide us with a financial summary of the quarter. And we will, as always, conclude today's call with questions and answers.
So please send us your questions throughout today's presentation. You can
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