- Shares in Zalando plunged 15% on Friday to lowest level in eight years.
- Europe’s largest online fashion retailer lowered its profit projection for the whole year.
- German-based retailer issued its second profit warning in as many months on Thursday evening.
- The company’s sales increased by 30% in 2021 because of the pandemic-driven surge in internet buying.
Zalando shares plunged 15% on Friday to their lowest level in eight years, after Europe’s largest online fashion retailer lowered its profit projection for the whole year.
The Berlin-based retailer with annual revenue of €10 billion issued its second profit warning in as many months on Thursday evening. It stated that its full-year operational profit, adjusted for one-time events, is likely to be roughly half of what was predicted one month ago.
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Since its debut on the Frankfurt stock exchange in 2014, the company has experienced 25 percent yearly growth and a 4.5 percent operating profit margin. The company’s sales increased by 30% in 2021 because of the pandemic-driven surge in internet buying.
On Thursday evening, Zalando said that a worse-than-anticipated performance in the second quarter dashed its previous aspirations for a turnaround.
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“Management now expects macroeconomic challenges to be longer-lasting and more intense than previously anticipated,” it said, adding that it “no longer assumes a rebound of consumer confidence in the short-term.”
