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Nelly Group: Profitability first - SEB

Nelly Group, a leading online retailer, focusing on the younger (15-25 years) womenswear segment of the market, has announced plans to reduce costs, mainly by reducing staffing and tightening its assortment. From lowered sales in the year ahead and our assumption of SEK 40m in annualised cost reductions, we raise our 2023-24 EBIT estimates by SEK 6-13m pa. We reiterate our SEK 27 mid-point DCF-based equity value per share.

Nelly Group, a leading online retailer, focusing on the younger (15-25 years) womenswear segment of the market, has announced plans to reduce costs, mainly by reducing staffing and tightening its assortment. From lowered sales in the year ahead and our assumption of SEK 40m in annualised cost reductions, we raise our 2023-24 EBIT estimates by SEK 6-13m pa. We reiterate our SEK 27 mid-point DCF-based equity value per share.
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