Zalando has swung to a loss after its third quarter was adversely impacted by an unprecedented heatwave.
For the three months to September, the Berlin-based online fashion retailer said it experienced a “financially challenging quarter”, reporting an adjusted EBIT loss of €39 million (£34 million).
This compares to a year ago when its adjusted EBIT was a profit of €400,000.
On an unadjusted basis, EBIT was a loss of €55.7 million (£48.6 million) for the quarter, compared to a much small loss of €5.9 million loss a year ago.
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Zalando attributed the performance to record-high summer temperatures which subsequently delayed the start of the autumn/winter season.
While quarterly sales increased 11.7 per cent to €1.2 billion (£1.04 billion), this was a marked slowdown compared to the 21 per cent sales growth recorded in the previous quarter.
Additionally, Zalando said the average basket size fell more than seven per cent to €57.50.
On the flipside, the online retailer said it now has 25.1 million active customers, an increase from 22.2 million customers a year ago.
“We are clearly not happy with our financial results in the third quarter,” Zalando co-chief executive Rubin Ritter said.
“Our eyes are set on building the ecosystem for European fashion at full speed and our 2020 target of doubling the business to €10 billion in gross merchandise volume.
“For the fourth quarter, the team’s full focus is now on pulling off a strong finish to the year.”
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