Nelly Group’s refocus on its core Nordic home markets underpinned a good local currency sales growth of 5.5% in Q1. The partnership programme with Zalando in Europe yields a lower, but positive, margin and without inventory risk. Along with the return to normal, occasional wear (a top-category in its core 15-25 year women target group) should grow its private label sales back to historical levels. We reckon this will drive gross margins further.
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