Zalando revises outlook after trading conditions deteriorate
Online fashion and lifestyle retailer Zalando has revised its outlook for its current financial year following a drop in European consumer confidence in June.
In early May, the company had pointed to the lower end of its full year guidance based on anticipated macroeconomic challenges, but also early signs of a potential recovery. However, it now expects the challenges to be longer lasting and more intense and anticipates that gross merchandise volume growth, revenue growth and adjusted EBIT will be significantly below analyst estimates for its second quarter, with profit weaker than expected.
The company is also updating its guidance for the full year 2022 and now expects gross merchandise volume to increase by 3% to 7% to between €14.8 billion to €15.3 billion.
Meanwhile, revenue is expected to edge up 0% to 3% to €10.4 billion to €10.7 billion with an adjusted EBIT of between €180 million to €260 million in the same period.
Robert Gentz, co-chief executive of Zalando, said: “While this new environment is creating a negative impact on our financial performance, our strategy and long term goals are unchanged.
“Our vision remains to be the starting point for fashion in Europe. There are many untapped opportunities in the fashion market that we can capture and are committed to change the industry for the better.
“By driving efficiencies across the company and selectively investing through-cycle, we will be even better positioned long-term to execute against our strategy. We are embracing the challenges and adapting to emerge stronger.”
