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Nelly Group AB (Nasdaq Stockholm: NELLY), a leading Nordic online fashion retailer for young women, announced the launch of a share repurchase program valued up to SEK 30 million, authorized by its Annual General Meeting on 18 May 2026. The program allows for the buyback of up to 2,500,000 ordinary shares, representing 8.18% of the total shares outstanding, aiming to optimize the company's capital structure. The repurchases will begin no earlier than 17 August 2026 and conclude by 17 February 2027. The Board intends to propose canceling the repurchased shares through a share capital reduction at the next Annual General Meeting, a key point for investors focused on capital return strategies.
Key Highlights
- Nelly Group AB (Nasdaq Stockholm: NELLY, Investegate reference: 0O6Z) is a Nordic online fashion retailer targeting young women, generating SEK 1.3 billion in annual sales.
- The Board approved a share repurchase program up to SEK 30 million, covering a maximum of 2,500,000 ordinary shares (up to 8.18% of total shares).
- Danske Bank A/S, Danmark, Sverige Filial, will independently execute repurchases on Nasdaq Stockholm between 17 August 2026 and 17 February 2027.
- Investors can track repurchase updates on Nelly’s website and anticipate the Board’s proposal on share cancellation at the next Annual General Meeting.
Nelly Group AB Authorized by 18 May 2026 AGM to Repurchase Up to 8.18% of Ordinary Shares
On 15 July 2026, Nelly Group AB’s Board of Directors announced the initiation of a share repurchase program based on authorization granted at the Annual General Meeting held on 18 May 2026. This shareholder approval confirms the program’s alignment with corporate governance standards. The announcement complies with the EU Market Abuse Regulation, confirming it as inside information requiring disclosure.
The program’s scope is significant for a Nordic mid-cap retailer, with a maximum repurchase amount of SEK 30 million and a cap of 2,500,000 ordinary shares, equating to no more than 8.18% of the company’s total shares. Regulatory limits ensure the company’s holding does not exceed 10% of total shares at any time during the program.
Danske Bank A/S to Independently Execute Repurchases on Nasdaq Stockholm Under MAR Safe Harbour Rules
Nelly Group has appointed Danske Bank A/S, Danmark, Sverige Filial, to independently execute the share buybacks without company influence. This structure complies with the European Commission’s Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation) and the Market Abuse Regulation (EU) No 596/2014 (MAR), ensuring regulatory compliance and protection.
All repurchases will occur on Nasdaq Stockholm, adhering to Safe Harbour and Nordic Main Market Rulebook requirements. Purchases cannot exceed the higher of the last independent trade price or the highest independent bid, nor be below the lowest independent purchase price. Volume restrictions apply to prevent market disruption.
Program Timeline: Share Buybacks Scheduled from 17 August 2026 to 17 February 2027
The repurchase program will run from 17 August 2026 through 17 February 2027, spanning approximately six months. This period allows for strategic execution across varying market conditions while providing transparency on the program’s duration.
Payments for repurchased shares will be made in cash. Ongoing updates and a comprehensive repurchase table will be available on Nelly’s website throughout the program, enabling investors to monitor repurchase progress against the SEK 30 million ceiling.
Capital Structure Optimization and Proposed Share Cancellation at Next AGM
The buyback aims to optimize Nelly Group’s capital structure, a common strategy to enhance shareholder value when management believes the stock is undervalued. Canceling repurchased shares would reduce the total shares outstanding, increasing remaining shareholders’ ownership proportion and potentially boosting earnings per share.
The Board plans to propose the cancellation of repurchased shares via a share capital reduction at the next Annual General Meeting. This proposal is subject to shareholder approval and represents a permanent reduction in share capital rather than a temporary treasury holding.
Nelly Group’s Share Capital Structure: 30,567,388 Total Shares Including Class C Shares
At disclosure, Nelly Group’s total shares and votes number 30,567,388, comprising 30,129,399 ordinary shares and 437,989 Class C shares. This dual-class structure is important for assessing the repurchase’s impact on ordinary shares.
The company held 42,747 treasury ordinary shares and 437,989 Class C shares at the time of announcement. The repurchase limit of 2,500,000 ordinary shares (8.18%) is calculated against the total share base including both classes. The 10% cap on treasury holdings ensures regulatory compliance throughout the buyback.
Nelly Group’s Business Overview: Nordic Digital Fashion Leader with SEK 1.3 Billion Annual Sales
Nelly Group AB, founded in 2004 and formerly known as Qliro Group, is a top fashion destination for young women in the Nordic region. The company combines its proprietary NELLY brand with selected external fashion brands, operating primarily as a digital-first retailer. It serves approximately one million Nordic customers online and generates annual sales of SEK 1.3 billion.
Expanding beyond digital, Nelly opened its first flagship store in Stockholm in 2023 and a second in Copenhagen in 2025, marking a strategic omnichannel evolution. Listed on Nasdaq Stockholm under ticker "NELLY," this buyback program is among the company’s most significant capital allocation moves relative to its share base.
Regulatory Compliance: Market Abuse Regulation and Safe Harbour Guidelines
The repurchase program adheres to the Market Abuse Regulation (EU) No 596/2014 (MAR) and the European Commission’s Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation). These frameworks regulate disclosure, trading conduct, and conditions under which companies may repurchase shares without market manipulation concerns.
Compliance explains the appointment of Danske Bank A/S as an independent broker, the enforcement of volume and price limits, and the requirement for continuous market disclosures. The announcement was published at 08:30 CEST on 15 July 2026, fulfilling Nelly Group’s MAR obligations. CFO Josefin Dalum is the designated investor relations contact for this program.
Investor Insights: Evaluating the SEK 30 Million Buyback Relative to Nelly’s Shares
The SEK 30 million buyback ceiling, alongside 30,129,399 ordinary shares outstanding, offers a framework to estimate the average repurchase price, though no specific price targets or minimum volumes were disclosed. The immediate market impact was not evident at publication.
Given the company’s existing treasury holdings, this program represents a meaningful capital return initiative. Investors will monitor whether the Board’s cancellation proposal leads to a significant reduction in fully diluted shares and track repurchase activity between August 2026 and February 2027 relative to the program limit.
Risks and Market Context for Nelly Group’s Buyback Program
Share repurchase execution depends on NELLY’s market price during the program. Rising share prices may limit the number of shares repurchased within the SEK 30 million cap, while liquidity constraints could affect purchase pace under volume restrictions.
Nelly operates in a competitive Nordic fashion market sensitive to macroeconomic factors affecting young women’s consumer spending. The company faces operational risks in e-commerce and competition from global fast-fashion platforms. Capital allocated to buybacks could alternatively support growth initiatives like physical store expansion or digital investments, presenting strategic trade-offs for investors.
Investor Relations Contact: CFO Josefin Dalum for Buyback Program Queries
CFO Josefin Dalum is the primary contact for investor relations regarding the share repurchase program. She can be reached via [email protected] and by phone. The CFO’s involvement reflects the financial nature of the buyback decision. Ongoing updates and a full repurchase table will be posted on Nelly’s website throughout the program.
The announcement was released at 08:30 CEST on 15 July 2026 in compliance with EU Market Abuse Regulation requirements. Shareholders and investors are encouraged to monitor the company’s website for transparent updates on repurchase volumes during the August 2026 to February 2027 period.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. The information is based solely on the referenced company announcement and has not been independently verified. Past performance does not guarantee future results. Readers should conduct their own research and consult a qualified financial advisor authorized by the Financial Conduct Authority or equivalent before making investment decisions.
