In This Article:
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Net Revenue: SEK239.6 million, a growth of 1.4% from the previous year.
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Profit After Tax: SEK22.3 million for the third quarter.
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Own Brand Share: Increased to 45.2% from 39.4% in the same quarter last year.
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Return Rate: Improved to 27.1% from 34.3% last year.
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Gross Margin: Improved to 54.5% from 50.7% in the previous year.
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Operating Margin: Increased to 10.5% from 5.4% last year.
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Operating Profit: SEK25.1 million, up from SEK12.8 million last year.
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Marketing Costs: SEK23.8 million, up from SEK21.1 million last year, representing 9.9% of net revenue.
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Cash Position: SEK190 million with no short-term credit utilized.
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Cash Flow from Operations: Negative SEK18.5 million, compared to negative SEK13.9 million last year.
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Investments in Noncurrent Assets: SEK3.1 million, down from SEK8.9 million last year.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net revenue grew by 1.4% to SEK239.6 million, indicating progress towards a healthier business.
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Own brand share increased to 45.2% from 39.4% last year, strengthening Nelly Group AB's market position.
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Return rates improved significantly to 27.1% from 34.3% last year, enhancing customer satisfaction and reducing costs.
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Gross margin improved to 54.5% from 50.7% last year, driven by a focused assortment strategy and better buying decisions.
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The flagship store in Stockholm delivered its strongest performance to date, contributing positively to sales.
Negative Points
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Total number of orders in the Nordics decreased by 10.4%, indicating challenges in market demand.
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Conversion rate declined to 1.8% from 2.1% last year, affected by a tough market and stock issues.
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Marketing costs increased to 9.9% of net revenue from 8.9% last year, impacting overall profitability.
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Cash flow from operations was negative SEK18.5 million, compared to negative SEK13.9 million last year.
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The company faced out-of-stock issues on popular styles, affecting potential sales during the quarter.
Q & A Highlights
Q: You currently have a large cash position. Do you have any plans going forward on how it can be best managed to create shareholder value? A: Helena Karlinder-Astlundh, CEO: We are pleased with our improved cash position, which indicates a healthier business. We are always evaluating the best ways to maximize shareholder value, considering the volatility and seasonal effects in the fashion retail industry. We aim to maintain a secure cash position over time.