Nelly proves it: Returns done right drive profit

Nelly Group has reported a strong Q1 2025 – and the results speak for themselves. Net revenue is up. Profit is back. And the return rate has dropped significantly.

Behind these improvements lies a clear shift: a smarter, long-term approach to returns.

Photo: Ehandel.se

Nellys Q1 in numbers:
Net revenue: SEK 247.8 million (+11.5%)
Profit after tax: SEK 16.3 million (vs. -1.9M last year)
Operating margin: 8.0% (up from 0.6%)
Return rate: 24.8% (down from 33.4%)
Own brand share: 50.1%

“The latter is the result of our long-term intensive work with a cross-functional returns strategy, while opening our physical store has also contributed positively to further reducing the return rate.”
— Nelly.com

Not just logistics. Strategy.

Returns are too often seen as a cost to minimize. But Nelly took a different approach – treating returns as a cross-functional lever tied to:

• Assortment development
• Fit optimization
• Customer expectations
• Brand experience

The result? Lower returns. Stronger customer satisfaction. Improved profitability per order. And better performance in key categories like jeans, tops and sneakers.

Next step: full control

Nelly is now moving its returns handling in-house, to its own warehouse in Borås. That means:

• Shorter lead times
• Lower cost per return
• Full visibility across the flow
• Better conditions for reconditioning and resale

Inretrn x Nelly

We’re proud to support Nelly in scaling this transformation. With Inretrn, their returns journey is digital, traceable and aligned with both customer experience and operational efficiency.
This is what happens when returns are done right! 👏

Read more about Nelly:

Nellys return strategy

Nelly Customer Case

Ready to rethink returns?
Let’s talk.