Sweden's Nelly Q2 revenue falls on weak demand
Sweden's Nelly Q2 revenue falls on weak demand
Overview
Sweden online fashion retailer's Q2 revenue fell 4.3% yr/yr
Q2 operating margin dropped to 9.3% from 15.3% a year earlier
CEO cites assortment planning and buying issues as reasons for weak quarter
Outlook
Company expects effects of improvement programme to emerge in both short and long term
Nelly says competitive landscape is changing rapidly, requiring more innovative and agile approaches
Company sees substantial potential with right execution in several markets
Result Drivers
ASSORTMENT PLANNING ISSUES - CEO said weak Q2 results were due to lack of precision in assortment planning and buying, especially in tops and dresses
SLOW RESPONSE TO CUSTOMER SIGNALS - Co said it did not respond quickly enough to early positive signals from customers, impacting performance
CATEGORY GROWTH - Co said jeans, pants and knitwear categories grew year-on-year despite overall weak quarter
Company press release: ID:nMFN8ppjF8
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 346.30 mln |
|
Q2 EPS |
| SEK 1.01 |
|
Q2 Net Income |
| SEK 30.40 mln |
|
Q2 Gross Margin |
| 53.20% |
|
Q2 EBIT |
| SEK 32.30 mln |
|
Q2 EBIT Margin |
| 9.30% |
|
Analyst Coverage
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)