Online trade
Zalando slides into the loss zone
The bottom line is that Zalando recorded a deficit of a good 61 million euros in the first quarter after plus 34.5 million euros in the previous year. Photo: Monika Skolimowska/dpa-Zentralbild/ZB
© dpa-infocom GmbH
Zalano has two successful pandemic years behind it. Now the development is normalizing. The online retailer was in the red in the past quarter.
The online fashion retailer Zalando suffered a setback in the first quarter. The turnover of the Berlin fell by 1.5 percent to 2.2 billion euros, as the company announced. In addition, the company slipped into the red.
The adjusted operating result (EBIT) was down almost 52 million euros, after a profit of more than 93 million euros in the same quarter of the previous year. The bottom line is that Zalando recorded a deficit of a good 61 million euros, compared to plus 34.5 million euros in the previous year.
Zalando is also struggling with the high comparison basis from the previous year due to the corona. The company has benefited significantly from the pandemic over the past two years as consumers have increasingly turned to online shopping. This development is now normalizing. In addition, deteriorating consumer sentiment, disruptions in the supply chain and rising inflation are having a negative impact.
Zalando confirmed the forecast for the current year, but only the lower end of the range should be reached. For 2022, the gross merchandise volume (GMV) is likely to increase by 16 to 23 percent to 16.6 to 17.6 billion euros. Sales are expected to increase by 12 to 19 percent to 11.6 to 12.3 billion euros. In terms of EBIT, the company sees 430 million to 510 million euros. Zalando intends to continue investing heavily: 400 to 500 million euros are to flow into the further development of the business.