Nelly Group AB

NELLY.ST

Specialty Retail · Consumer Cyclical

Price

kr 34.54

+0.44 (+1.29%)

Market Cap

kr 1.04B

Exchange

Stockholm Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+38.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 21.6M (2021) → 30.0M (2025)

Nelly Group AB is a Swedish online fashion retailer that sells clothing, shoes, and accessories mainly to young women in their teens and twenties. The company operates two brands — Nelly and NLY Man — and focuses on affordable, trend-driven styles sold entirely through its own websites. It is one of the larger pure-play online fashion retailers in the Nordic region.

Nelly makes money by selling products directly to consumers through its e-commerce platform, keeping a meaningful share of each sale given its roughly 55% gross margin. The company operates primarily in Sweden, Norway, Finland, and Denmark, with smaller sales in other European markets. Its competitive edge comes from strong brand recognition among young Nordic women and a data-driven approach to trend forecasting and inventory. The main risk the business faces is intense competition from large international fast-fashion platforms like Zalando and ASOS, which have significantly greater scale and marketing budgets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-68.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

71.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~23 months

$215M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue declining

Nelly Group AB's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

55.3%

Premium pricing power — 55.3% gross margin

Operating Margin

3.3%

Thin — 3.3% operating margin

ROCE

1.9%

Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+12.4%

Fast-growing sales (12.4% YoY)

EPS YoY

+55.0%

Earnings growing fast (55.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

70%

Modest — 70% of profit becomes cash

FCF Margin

6.3%

Modest free cash flow (6.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

12.16x

Comfortably covers interest (12.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

6.6x

Attractive valuation — P/E 6.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-4.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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