Nelly Group

Report Publication Announcement • Jun 9, 2022

PRESS RELEASE 09 June 2022 16:45:00 CEST

Nelly comments the second quarter

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.

For more information, please contact:

John Afzelius, CFO +46 703 510 987 ir@nelly.com

About Nelly Group

Nelly Group operates nelly.com which is one of the Nordic region's strongest fashion brands for young women and nlyman.com. The core is the own brand in combination with digital sales directly to our target group. Nelly has created a strong commitment through a high degree of fashion and digital marketing. The company has 1.2 million customers and sales of SEK 1.4 billion per year. The group was previously called Qliro Group. Nelly Groups is listed on Nasdaq Stockholm in the small-cap segment with the ticker "NELLY".

This information is information that Nelly Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-06-09 16:45 CEST.

Nelly Group AB Corporate Domicile Borås Corp. Reg. No. 556035-6940 www.nelly.com

Visiting address Lundbygatan 1, 506 30 Borås Postal address Box 690, 501 13 Borås

PRESS RELEASE 09 June 2022 16:45:00 CEST

Attachments

Nelly comments the second quarter

Nelly Group AB Corporate Domicile Borås Corp. Reg. No. 556035-6940 www.nelly.com

Visiting address Lundbygatan 1, 506 30 Borås Postal address Box 690, 501 13 Borås