The weak price development of Zalando shares will continue in 2024. On Friday, the price fell by 2.89 percent to 18.82 euros, approaching the record low of just over 17 euros, to which it fell shortly after the IPO in autumn 2014. The issue price was 21.50 euros.
In the still young stock market year of 2024, Zalando’s price losses add up to a good 12 percent, which means it is in last place in the Dax. As early as 2023, the papers were at the bottom of the German leading index with an annual decline of a good 35 percent; In 2022 they were second to last with a loss of more than half.
The weak development is accompanied by a general, more cautious attitude among investors towards online and technology stocks, which will be evident on the US stock exchanges in 2024.
Last year, Zalando, like many companies in the fashion industry, experienced a reluctance to buy from customers. High inflation, economic uncertainties, high inventories and sales with deep discounts left their mark. The fact that Zalando made progress in containing costs at the same time did not help the shares. For comparison: in mid-2021, Zalando had reached a record of almost 106 euros. Back then – in the middle of the corona pandemic – online trading was booming.
On Thursday, a profit warning from JD Sports Fashion further dampened the mood. The British sports retailer lowered its profit forecast for the financial year after a disappointing performance in the important Christmas business. The company blamed unusual weather and subdued consumer spending for weak sales in the run-up to the holidays. It was also said that the margins for the year as a whole will probably be lower than in the previous year. This was justified by special offers and promotions that were used to attract buyers during the Christmas season.
The statements also weighed on the shares of sports fashion manufacturers such as Adidas and Puma. While Adidas was also under some pressure on Thursday, Puma is attempting to recover with a gain of 0.7 percent. In contrast to Puma, Adidas had a strong run in 2023. Investors here were betting on a recovery under new boss Bjørn Gulden, who came from rival Puma. (dpa)