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Nelly Group: Bang. Hats off - SEB

Nelly Group, the online retailer of womens fashion, recorded Q3 margins well ahead of our forecasts, reflecting strong execution an all key retail metrics, including lower return rates and increasing private label share of sales. Gross margins of 50.7% are 370bps ahead of us and a full 920bps up y/y. EBIT of SEK 12.8m compares to last year's LBIT of SEK 11.8m, corroborating the ongoing turnaround. We are contemplating significant EPS upgrades. Our current mid-point is SEK 18.

Nelly Group, the online retailer of womens fashion, recorded Q3 margins well ahead of our forecasts, reflecting strong execution an all key retail metrics, including lower return rates and increasing private label share of sales. Gross margins of 50.7% are 370bps ahead of us and a full 920bps up y/y. EBIT of SEK 12.8m compares to last year's LBIT of SEK 11.8m, corroborating the ongoing turnaround. We are contemplating significant EPS upgrades. Our current mid-point is SEK 18.
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