Zalando revenue falls 4% but growth expected to return

Zalando’s revenue fell by four per cent to €2.1 billion in the second quarter of the year.

The Berlin-based fashion retailer’s gross market volume (GMV) remained flat at zero per cent to €3.1 billion.

A challenging macroeconomic environment due to headwinds from external factors, notably lower consumer confidence, inflationary pressures and selected supply shortages impacting availability were the results’ main drivers, the company said.

The company also lowered its profit guidance for the year, expecting an adjusted EBIT of between €180 million and €260 million.

However, the e-commerce retailer said it expects growth and improved profitability for the second half of 2022.

Robert Gentz, co-chief executive at Zalando, said: “We have demonstrated our agility as a team, showing that we can react quickly to adapt to the current environment while also making the experience of our customers even more inspiring and engaging.”

He added: “We continue to grow our customer base and are fully focused on our strategy and making selective investments across our business to ensure our long-term growth.”

Despite the flat growth results, Zalando’s customer base grew by 11 per cent to over 49 million, while the company’s loyalty programme, Zalando Plus, grew 164 per cent year-over-year to 1.5 million members.

Commenting on its growth trajectory, Dr Sandra Dembeck, chief financial officer of Zalando, said: “We are focused on efficiency and margin improvement measures that will help us strengthen our profitability in the second half of the year.

“Our healthy balance sheet allows us to continue to invest into our technology platform and logistics infrastructure to enable our long-term growth trajectory.”

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