First part of relaunch complete – full focus on continued repositioning of
Q3 2021 – Significant events
- Design collaboration with
Bianca Ingrosso generated attention, website traffic and sales - Warehouse relocation and automation project completed on time and under budget
- Continued solid inventory turnover rate and more up-to-date stock
Q3 2021 – Financial highlights
- Net revenue increased to
SEK 312.6 (306.2) million, corresponding to growth of 2.1% (-6.9%) - Gross profit fell to
SEK 143.4 (144.3) million, corresponding to a gross margin of 45.9% (47.1%) - Operating profit of
SEK -27.3 (-0.7) million, corresponding to an operating margin of -8.7% (-0.2%), including costs related to warehouse relocation ofSEK 22 million - Net income from continuing operations of SEK -29.4 (-2.3) million, corresponding to earnings per share of
SEK -1.63 (-0.14)
January-
- Net revenue increased to
SEK 1,021.1 (1,000.3) million, corresponding to growth of 2.1% (-4.9%) - Gross profit increased to
SEK 462.0 (443.8) million, corresponding to a gross margin of 45.2% (44.4%) - Operating profit of
SEK -35.4 (-46.1) million, corresponding to an operating margin of -3.5% (-4.6%) - Net income from continuing operations of SEK -39.4 (-78.5) million, corresponding to earnings per share of
SEK -2.18 (-5.11)
Focus on improved customer experience and marketing efficiency
Repositioning
The warehouse project is a success. We closed Falkenberg and opened Borås as planned and delivered the project under budget. We are now laser-focused on realising our objective of annual savings of
We are finally able to be physically on site in Borås, and it is important, especially for our more than 60 new employees, to meet IRL. It has been quite a challenge to onboard so many new colleagues without being able to meet in person. Now we can intensify our efforts to come together so we can gradually improve the experience and value for our customers with a better grasp of the website and with the many continuous improvements made every day.
Growth and inventory control
We end the quarter at 2.1% growth despite a weak start. We also faced challenges with traffic and generally high discount pressure in the first two months of the quarter. After a weak start, we intensified our activities in September, the Fall Fashion Festival early in the month and ending with the collaborative collection Bianca x
Inventory turnover continues to be good, and the stock is up to date. However, the currently strained situation in the freight and logistics market is causing delays and higher costs. Since we are now nearshoring most of our own brand production, we can react faster and more efficiently to adapt campaigns and websites to those items that are available. Cash on hand of
Nelly’s engaged community: the basis for our future growth
Our engaged community of 1.2 million customers is our main focus every day. This engagement in our channels is the basis for our future growth. We are inspired by international successes in social commerce where the customer base of others like us have a strong presence in social channels and a loyal, engaged community.
Box 690
501 13, Borås
Org.nr 556035-6940
Registered office: Borås
Visiting address: Lundbygatan 1, Borås
Webcast on the interim report
Analysts, investors and the media are invited to a webcast presentation of Q3 on
Webcast:
https://financialhearings.com/event/13893
Conference call:
US: +1 646 722 49 57
Presentation materials and the webcast will be made available at:
https://www.nellygroup.com/en/investors/presentations/
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