Sweden's Nelly Q3 revenue rises on promotional activity
Sweden's Nelly Q3 revenue rises on promotional activity
Overview
Sweden online fashion retailer's Q3 revenue rose 10.3% yr/yr, gross margin declined slightly
Operating profit and net income fell compared to prior year
Company completed SEK 30 mln share buyback; CEO and CFO departures announced during quarter
Outlook
Company did not provide specific financial guidance for the current or coming quarters in the press release
Result Drivers
PROMOTIONAL ACTIVITY - Gross margin declined mainly due to increased promotional activity, as company used deeper discounting to drive sales
HIGHER MARKETING SPEND - Growth required increased marketing investment, with marketing costs as a share of net revenue rising to 10.0% (9.4%)
ASSORTMENT MIX - Autumn assortment converted better but was not sufficiently compelling on its own, requiring higher discounting and marketing spend
Company press release: ID:nMFN8yYV2r
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 313.10 mln |
|
Q3 EPS |
| SEK 1.02 |
|
Q3 Net Income |
| SEK 30.60 mln |
|
Q3 Gross Margin |
| 56.50% |
|
Q3 EBIT |
| SEK 42.40 mln |
|
Q3 EBIT Margin |
| 13.50% |
|
Analyst Coverage
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
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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.)