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Nelly Group:Q2: The relaunch continues - SEB

Nelly Group, the online fashion retailer, reports Q2 sales of SEK 396.7m (-3.9% vs. SEB at SEK 413m, no cons.). Y/y growth amounts to 1.4%, mainly from everyday fashion as occasional wear still sees a demand hit from the pandemic. EBIT came in at 7.0m (SEB 7.4m), supported by a lower-than-expected OPEX. Low volumes of older inventory pave the way for a more attractive customer offering and better margins going forward. We reiterate our midpoint DCF value of SEK 55 per share.

Nelly Group, the online fashion retailer, reports Q2 sales of SEK 396.7m (-3.9% vs. SEB at SEK 413m, no cons.). Y/y growth amounts to 1.4%, mainly from everyday fashion as occasional wear still sees a demand hit from the pandemic. EBIT came in at 7.0m (SEB 7.4m), supported by a lower-than-expected OPEX. Low volumes of older inventory pave the way for a more attractive customer offering and better margins going forward. We reiterate our midpoint DCF value of SEK 55 per share.
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