Ahead of Nelly Group's Q4 results, due 6 February, we raise our sales and EBIT forecasts for 2024-26. That reflects our increased gross margin assumptions, driven by a higher share of sales from full-priced items in the coming quarters, return rates staying low in 2025-26 and operational leverage from automation as Nelly returns to growth. We raise our DCF-based mid-point value of SEK 43 (40) with a range of SEK 33-54.
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