Fashion retailer: Zalando with figures below expectations – shares under pressure
The online fashion retailer has generated less revenue and profit in the second quarter than expected. The costs of integrating About You also weighed heavily. The share is falling before the opening bell.
Frankfurt. Zalando has missed market expectations with its quarterly results. In response, Europe's largest online fashion retailer expressed more cautious views on its full-year prospects on Tuesday. The growth in the gross merchandise volume (GMV) traded on the platform and in group revenue is expected to be at the lower end of the targeted range of 12 to 17 percent.
The company narrowed its forecast for operating profit to 680-720 million euros from previously 660-740 million euros. "The specification of the annual forecast reflects the results of the first half-year and no changed expectations for the rest of the year."
In pre-market trading on Tradegate, the share price fell by 11 percent to 25.90 euros compared to the Xetra close. This would mean that part of the price gains recorded since mid-May would be lost again. In the past quarter, GMV and revenue each grew by just under 21 percent to 4.92 and 3.42 billion euros respectively. The main growth driver was the company's business with corporate customers.
The adjusted operating result improved by around 10 percent to 204.8 million euros. However, the costs of integrating the acquired competitor About You weighed on the margin.
Translated by urgent.news from Handelsblatt's report; automated translation may contain errors. Machine-written — it may contain errors, so check the original before relying on it.
