First part of relaunch complete – full focus on continued repositioning of Nelly
Q3 2021 – Significant events
Q3 2021 – Financial highlights
January-September 2021 – Financial highlights of the first nine months
Focus on improved customer experience and marketing efficiency
Repositioning Nelly includes focusing on a more narrowly defined target group, a wider offering and a focus on addressing a wider array of emotional brand attributes. During the next quarters we will prioritise generating more traffic based on our strong brand position. During the year, we changed the way we buy website traffic and we have boosted our conversion. Our position also requires that we further develop our channel strategy to build brand and to generate more revenue from each marketing krona spent. The most important thing is to generate additional organic traffic, including in new channels that are important to our target group, such as TikTok and different types of live shopping.
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 SEK 35 million and giving our customers a “WOW” delivery experience.
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 Nelly. The design collaboration with Bianca Ingrosso made a significant impact and generated both website traffic and sales. Higher direct marketing costs impacted profit negatively in the quarter.
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 SEK 141 million is also an important tool for being able to react quickly to business opportunities and fend off challenges like delivery delays.
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.
Kristina Lukes, CEO Nelly Group AB
Nelly Group AB (publ)
501 13, Borås
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 20 October 2021 at 10 a.m. CET. The presentation will be delivered in English by CEO Kristina Lukes and CFO John Afzelius. The webcast will be made available on the Nelly Group website.
Sweden: +46 8 505 583 52
UK: +44 333 300 92 66
US: +1 646 722 49 57
Presentation materials and the webcast will be made available at: