Nelly Group - a leading online retailer of women's fashion - recorded Q2 EBIT of SEK 8m compared to our SEK 4m estimate (no consensus available). Most importantly, we argue the turnaround to positive EBIT corroborates its strategic review, focusing on a tightened assortment, while maintaining categories and prioritising profitability over sales growth. We are contemplating upgrading our full-year assumptions accordingly. Our mid-point equity value is SEK 12.50 (under review).
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