Zalando records a loss for Q1, issues profit warning

Zalando records a loss for Q1, issues profit warning

Online fashion business Zalando which trades across Europe has recorded a fall in revenue for its first quarter along with a 50m euro loss. It says that rising inflation and soaring costs are causing consumers to become less free in their spending.

Zalando says that its full-year sales will be at the lower end of its 12 per cent to 19 per cent range. Whilst not commented on, on the ground commentators, confirm that consumer confidence has become very low in Germany with the ongoing conflict in Ukraine impacting demand across eastern Europe. The rising cost of living and the passing on of increased freight costs are also causing consumers to significantly limit their purchases.

Dr Sandra Dembeck, CFO, Zalando said: “We are flexible and well-equipped to steer Zalando through this volatile market environment. This includes making the necessary adjustments to improve our performance. At the same time, we are continuing to invest through the cycle to drive long term value. We are expanding our logistics network and advancing our platform to better serve our customers and partners, enable sustainable future growth and set us up for long-term success.”


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