Online fashion retailer Zalando’s profits fall as in-store sales rebound By Reuters
© Reuters. FILE PHOTO: The logo of fashion retailer Zalando is pictured at the new headquarters in Berlin, Germany April 10, 2019. REUTERS / Hannibal Hanschke
BERLIN (Reuters) – German online fashion retailer Zalando on Wednesday posted lower quarterly profits as the pandemic-fueled e-commerce boom slowed, with customers shopping more in physical stores that offered deep discounts after the loosening of blockages.
Europe’s largest fashion e-commerce player said its adjusted operating profit fell to 9.8 million euros ($ 11.35 million) from 118 million a year ago, while the sales rose 23% to 2.3 billion euros, slightly ahead of the analysts’ average estimate of 2.24 billion.
Zalando said its operating profit was in line with the figure it posted in the third quarter of 2019, before the pandemic helped the company post exceptional results.
“Despite rising inflation and supply chain uncertainties, we remain confident in achieving our improved outlook for the full year,” CFO David Schroeder said in a statement.
Zalando reiterated that he expects 26% to 31% growth in annual revenue to reach 10.1 billion to 10.5 billion euros and expects adjusted profit before interest and taxes to reach the top half of its € 400 million to € 475 million range.
British rival ASOS (LON 🙂 warned last month that supply chain pressures and consumer reversion to pre-pandemic behavior could cut 2022 profits by more than 40%.
($ 1 = € 0.8636)
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