By Ulrike Duration
FRANKFURT (Dow Jones) — Zalando has set itself moderate targets for the current year after achieving the annual forecasts for 2022 at the lower end of the target ranges. The current priority for securing profitability is improving margins and simplifying the organization. The Berlin online fashion retailer confirmed that “several hundred overhead roles in many teams” are to be reduced in this context.
The medium-term goals themselves were confirmed, but the DAX group left open the period by which they would be achieved. The group is confident of returning to double-digit growth in gross merchandise value (GMV) in the medium term. As early as November, Co-CEO Robert Gentz described the achievement of the goals in 2025, as originally planned, as “less likely”.
In the full year 2022, the GMV was 14.798 billion euros, growth was 3.2 percent. Most recently, Zalando had promised the lower end of the 3 to 7 percent range for GMV. Sales were 10.345 billion euros, down 0.1 percent. Zalando had recently targeted the lower limit of 0 to 3 percent here.
Adjusted EBIT for the full year was EUR 184.6 million after EUR 468.4 million in the previous year. Zalando recently wanted to reach the lower end of the range of 180 to 260 million euros. The corresponding adjusted EBIT margin deteriorated to 1.8 percent from 4.5. After taxes, there was a significant decline in profit to 16.8 million euros from 235 million for the year as a whole.
In the current year, Zalando wants to increase the GMV by 1 to 7 percent, sales should develop between minus 1 percent and plus 4 percent. Adjusted EBIT is expected to be in the range of EUR 280 to 350 million. The industry is struggling with inflation-related higher input costs and a loss of purchasing power among its customers.
Contact to the author: [email protected]; @UlrikeDauer_
DJG/uxd/kla
(END) Dow Jones Newswires
March 07, 2023 01:02 ET (06:02 GMT)
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