The flourishing Corona times are over, in the past few months the online retailer Zalando has felt the reluctance of customers to buy. The high inflation weighs on the mind of the consumer. The final quarter of 2022, including the Christmas business, brought only slight sales growth. Full warehouses and high competition led to high discount pressure.
After the slump in profits from last year, the austerity program including job cuts is now coming. The group wants to become more profitable again. The company, which has been spoiled with double-digit growth rates over the years, still rates the growth prospects for 2023 as cautious.
Consumer demand remains difficult to predict, said the management around the two co-chairs Robert Gentz and David Schneider in March. The company forecasts a sales development of between minus one and plus four percent. The gross goods volume is expected to increase by one to seven percent. The adjusted operating result (adjusted EBIT) is likely to rise to between 280 million and 350 million euros in the current year. Management is already factoring in efficiency gains from the austerity program announced in February.
Is the annual forecast confirmed?
According to expert Benjamin Kohnke from the investment bank Stifel, the first quarter is not necessarily the one to focus on. It is unlikely that the first quarter will show a trend reversal. He therefore expects the group to confirm its forecast for the current year.
On average, the analysts listed on Bloomberg expect revenues of around 2.2 billion euros for the first quarter of the year. They are therefore likely to stagnate compared to the same period of the previous year. Operationally and bottom line, the experts expect a loss in the first three months of the year. However, it should be significantly lower compared to the previous year.
Analyst Georgina Johanan from the US bank JPMorgan expects few surprises in the first quarter. The gross merchandise volume of the online fashion retailer is likely to have increased in the low single-digit percentage range. And after a certain sustained deterioration in the gross margin, the expert expects an almost balanced operating result. Nevertheless, she is aware that the unfavorable weather has persisted, which could have affected the development in the second quarter.
According to analyst Simon Irwin from the Swiss bank Credit Suisse, Zalando could increase its market share from 10 to 15 percent by 2030. Zalando is the most brand- and customer-friendly provider in its industry in Europe, as it offers a wide range of brands, free delivery and returns, multiple payment options and significant size. (dpa)