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Nelly Group: The bottom line - 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, by SEK 40-50m with full effect as of Q2 2023. Based on rather unchanged assumptions we reiterate our estimates for declining sales next year – but also a turnaround to positive EBIT (while thin). We reiterate our SEK 27 mid-point equity value.

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, by SEK 40-50m with full effect as of Q2 2023. Based on rather unchanged assumptions we reiterate our estimates for declining sales next year – but also a turnaround to positive EBIT (while thin). We reiterate our SEK 27 mid-point equity value.
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