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Fashion retailer: The crisis is catching up with Zalando

Fashion retailer: The crisis is catching up with Zalando
Written by insideindyhomes

Et is not a good time for traders in non-essential goods. With inflation rates around 8 percent and energy prices rising by a good third, many consumers are wondering what they can do without. Fashion and cosmetics are obviously part of many – and that hits Europe’s largest trading platform for these goods – the Berlin Dax company Zalando – with force.

The group is already struggling to balance its business in the post-Corona period. After the pandemic, during which he and his investors were spoiled with success, Zalando recorded the first drop in sales in its company history at the beginning of the year. In the spring quarter from March to June, the group is now caught up with the crisis of war and inflation.

Earnings “significantly” below analysts’ expectations

So much so that the company’s management apparently felt compelled to announce in an ad hoc release on Thursday evening that growth in sales, profit and value via the platform of articles distributed (GMV) are “significantly” below current analyst expectations. As a result, its share price collapsed by a good 8 percent in after-hours trading. “The second quarter is profitable, but weaker than expected,” Zalando wrote.


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For detailed view

The company did not reveal exact figures, Zalando wants to continue to present its quarterly results on August 4th. So you might think: profitable after all. Because in the first quarter of the year there was a deficit of 51.8 million euros in the operating result (adjusted and before interest and taxes). However, the point at which the announcement then gave concrete figures – with the corrected annual outlook – is likely to largely destroy the hopes of investors.

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