Nelly Group AB’s (”Nelly’s”) net revenue for the second quarter 2022 is expected to decrease by a double digit percent figure and the operating profit is expected to be negative or close to zero. Nelly’s net revenue amounted to 396.7 million kronor for the second quarter 2021 with an operating profit of 7.0 million kronor.
Nelly is transforming the company, clearly targeting profitability. This includes more efficient logistics and processes. This work is now intensified, and the priority is clearly a return to profitability rather than growth, inter alia through a cost review and a hiring freeze.
Nelly’s revenue decreases primarily because of fewer visits to our websites. E-commerce has developed weakly during the spring, which increases competition to drive traffic and attract customers online. At the same time, we see an increase in organic traffic. Despite a higher gross margin and lower warehousing costs, the operating profit decreases, mainly as a result of the lower revenues. We now increase the pace in our transformation towards profitability, says Kristina Lukes, CEO of Nelly.