Nelly Group Q1: Very soft; EBIT down 60% y/y and misses estimates by as much - SEB

Nelly Group's Q1 report was soft, with net sales of SEK 243m, down 2% y/y and 5% below SEB. While the gross margin expanded by 3.7pp to 55.3% y/y, driven by record own-brand share of 62.7%, EBIT of SEK 8m (down 60% y/y) came in 64% below SEB's SEK 22m estimate. The miss was driven by higher admin costs (+29% y/y) and marketing spend. A higher return rate and weak traffic compounded the top-line miss. We expect shares to underperform today.

Länk till analysen i sin helhet: https://research.sebgroup.com/corporate/reports/141343