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Zalando sees FY results at lower end of target range
Global Banking & Finance Review®
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FRANKFURT (Reuters) -Zalando, Europe’s biggest online fashion retailer, said it now expects its full-year revenues and operating profit to reach the lower end of its target range as it reported quarterly financial results.
FRANKFURT (Reuters) -Zalando, Europe’s biggest online fashion retailer, said it now expects its full-year revenues and operating profit to reach the lower end of its target range as it reported quarterly financial results.
Zalando as well as rivals such as ASOS and Boohoo are feeling the impact of waning consumer confidence amid soaring inflation.
Zalando still posted a jump in third-quarter adjusted group earnings before interest and tax (EBIT) to 13.5 million euros ($13.24 million) from 9.8 million euros, it said on Thursday.
Gross merchandise value grew by 7.1% to 3.28 billion euros, and the number of active customers exceeded 50 million for the first time.
To cut costs, Zalando has reduced marketing spending, introduced a minimum order value in all its markets and has worked to improve efficiency across its European logistics network.
It said on Thursday that orders below the minimum order value were now profitable.
($1 = 1.0194 euros)
(Reporting by Hakan Ersen; Writing by Maria Sheahan; Editing by Tom Hogue and Paul Carrel)
Operating profit is the income generated from normal business operations, excluding any income derived from non-operational activities such as investments or sales of assets.
Gross merchandise value (GMV) is the total sales dollar value for merchandise sold through a company's platform over a certain period, before deducting any fees or expenses.
Consumer confidence is an economic indicator that measures how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy.
Adjusted EBIT (Earnings Before Interest and Taxes) is a measure of a company's profitability that excludes certain one-time items, providing a clearer view of operational performance.
Marketing spending refers to the budget allocated by a company for advertising, promotions, and other marketing activities aimed at increasing sales and brand awareness.
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