It is not just bricks & mortar retailers feeling the heat this year. Zalando has said that it expects its EBITDA to be well below its original guidance and its sales growth is also expected be considerably lower. Zalando had originally forecast EBITDA to come in at between £195m and £240m, instead it now advises that it will be between £133m and £160m. However the business says it is outperforming the wider fashion sector and posted sales of £2.22bn for the first half of 2018. The news saw its share price drop to its lowest level in over two years.
Zalando’s CEO Rubin Ritter commented: “Despite the challenging market environment, we continue to invest in growth and remain committed to our target of doubling the business by 2020.”
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