{
  "id": 2093989,
  "title": "Klarna stock plunges 22% on trimmed guidance as German retail sales slow",
  "url": "https://urgent.news/2026/08/18/klarna-stock-plunges-22-on-trimmed-guidance-as-german-retail-sales",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T14:15:17.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/article/klarna-stock-plunges-22-on-trimmed-guidance-as-german-retail-sales-slow-141517463.html"
  },
  "original_language": "en",
  "account": "Klarna's stock plummeted by 22% after the company released its earnings and adjusted its guidance, which failed to meet the expectations of Wall Street investors. The Swedish online retailer, known for its buy-now-pay-later model, revised its projections for revenue and gross merchandise value (GMV), a key metric representing the total value of goods sold through its platform. Klarna now forecasts its 2026 GMV to fall between $149 billion and $151 billion, a decline from its earlier estimate of $155 billion. Revenue for the year is now anticipated to be between $4.08 billion and $4.16 billion, lower than the previous forecast of $4.34 billion. The company's downward revision is primarily attributed to a slowdown in retail sales and declining consumer sentiment in Germany, which represents Klarna's largest market by volume.\n\nKlarna's Chief Financial Officer, Niclas Neglén, who is leaving the company after six years, stated that the revised guidance assumes a weaker performance in Germany rather than a recovery. Despite the guidance revision, Klarna anticipates strong second-half growth in the US due to the scaling of five significant integrations. The transaction margin dollars, which account for total revenue minus transaction costs, are now projected to be in the range of $1.62 billion to $1.65 billion, up from the previous estimate of $1.61 billion.\n\nInterestingly, Klarna's profit during the second quarter surpassed Wall Street's expectations. Earnings per share reached $0.01, outperforming the anticipated $0.06 loss per share, according to S&P Global Market Intelligence. Revenue also exceeded forecasts, increasing by 27% year-over-year to $1.04 billion, surpassing the estimated $996 million. Moreover, the number of consumers delinquent on their loans over 30 days decreased by more than 20 basis points quarter-to-quarter, indicating a potential improvement in consumer health within the K-shaped economy. This scenario might suggest that buy-now-pay-later firms are more susceptible to lower-income consumers. Klarna's customers, on average, maintain a balance of $124. For comprehensive stock market news and analysis, including events that influence stock prices, refer to the latest financial and business coverage from Yahoo Finance.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}