This article first appeared on GuruFocus .
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Net Revenue (Q4 2025):SEK370.5 million, up 16.4% from the previous year.
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Operating Profit (Q4 2025):SEK47.8 million, an increase from SEK36.2 million last year.
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Operating Margin (Q4 2025):12.9%, compared to 11.4% in the previous year.
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Net Revenue Growth (Full Year 2025):15.5%, compared to 3.2% the previous year.
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Operating Profit (Full Year 2025):SEK166.4 million, up from SEK93.1 million the previous year.
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Operating Margin (Full Year 2025):13.2%, compared to 8.5% the previous year.
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Gross Margin (Q4 2025):54.0%, up from 53.3% last year.
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Return Rate (Q4 2025):22.8%, down from 27.9% last year.
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Average Order Value (Q4 2025):Decreased by 9.6% to SEK656.
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Cash and Cash Equivalents (End of Q4 2025):SEK253.8 million, compared to SEK196.9 million last year.
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Equity Ratio (End of Q4 2025):41.1%, up from 26.4% last year.
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Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Nelly Group AB ( FRA:CD20 ) achieved a net revenue growth of 16.4% in Q4 2025, compared to 5.5% in the same quarter last year.
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The company reported an operating profit of SEK47.8 million in Q4 2025, up from SEK36.2 million in the same quarter last year, with an improved operating margin of 12.9%.
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For the full year 2025, net revenue grew by 15.5%, and operating profit increased to SEK166.4 million, with an operating margin of 13.2%.
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The active customer base in the Nordics grew for the fifth consecutive quarter, driven by higher conversion rates.
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Nelly Group AB ( FRA:CD20 ) achieved a historically low return rate of 22.8% in Q4 2025, down from 27.9% in the same quarter last year, positively impacting results.
Negative Points
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The market was challenging due to high price sensitivity among customers, leading to a preference for value-priced items and fewer items per basket.
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Intense discounting across the fashion segment, particularly in November, impacted the operating environment.
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An unusually warm start to the winter affected demand for seasonal categories like jackets and boots, requiring higher marketing intensity and discounts.
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The average order value decreased by 9.6% in the Nordics due to lower average item value and fewer items per order.
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Currency effects, particularly the depreciation of the Norwegian krone, negatively impacted the growth rate and gross margin.
Q & A Highlights
Q: How has Germany developed during the most recent quarter, and how do the return rates look there? A: Helena Karlinder-Ostlundh, CEO: Germany has shown positive development, particularly in return rates, which have improved over the last year to 1.5 years. This improvement allows us to focus more on Germany, but we are proceeding in a controlled manner, conducting trials with marketing to gauge response.
Q: Could you provide an update on the establishment in Germany and expected growth rate compared to the Nordic markets? A: Helena Karlinder-Ostlundh, CEO: We don't disclose detailed market data, but the German market has responded well to our Nelly brand. We are focusing on profitable growth and monitoring core principles closely in Germany. The exact focus on Germany and its business share will be determined over time.
Q: Order growth decelerated from 20% in Q3 to 9% in Q4 despite increased marketing spend. What changed between Q3 and Q4? A: Helena Karlinder-Ostlundh, CEO: The fourth quarter was challenging with a cautious customer base, requiring higher marketing spend and discount levels to drive traffic and conversions. This reflects the market conditions we operated under, and while we achieved stable results, it was tough.
Q: What are the plans for the Rest of the World segment, which stands for 7% of revenues in Q4? A: Helena Karlinder-Ostlundh, CEO: Our primary focus outside the Nordics is Germany. We are not actively driving sales in other European markets at the moment, as we believe in focusing on one market at a time to ensure profitability and manage challenges effectively.
Q: What is a realistic sustainable EBIT margin for 2026 and beyond, considering the new investment phase? A: Niklas Lingblom, CFO: Continued investment in CapEx and OpEx is necessary. Q4 saw gross margin pressure from price competition, and flexibility will be needed in marketing strategy. We expect scaling effects from larger volumes, with profitable growth remaining our main focus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
