Zalando share falls: Zalando makes losses

The Zalando group felt the reluctance of customers to buy in view of rising costs.

The Berlin online marketplace for fashion has now confirmed its forecast for the year as a whole at the lower end for sales, gross merchandise volume (GMV) and adjusted EBIT. The planned investments are to be carried out in full in the current year planned.

The quarter saw an adjusted EBIT loss of 51.8 million euros after a profit in the previous year. After taxes, the loss was 61.3 million euros – after a profit of around 35 million euros. Sales fell by 1.5 percent to around 2.2 billion euros. The gross goods volume increased slightly by 1 percent to around 3.18 billion euros.

For the year as a whole, adjusted operating earnings before interest and taxes (EBIT) should end up at the lower end of the range of 430 to 510 million euros. GMV is also expected to increase at the low end of the range 16 to 23 percent, with sales at the low end of the range 12 to 19 percent. The group intends to continue investing EUR 400 to 500 million in the current year.

Via XETRA, the Zalando share fell 1.48 percent to 36.60 euros.

By Ulrike Duration

FRANKFURT (Dow Jones)

Image Credits: DANIEL ROLAND/AFP/Getty Images