// Zalando warns on profits as customer demand slows down
// The online retailer is introducing a minimum order value across 15 additional markets
Zalando has issued a profit warning after the company’s guidance pointed to the lower end of growth.
The online retailer cut its guidance for fiscal year 2022 and no longer assumes a rebound of consumer confidence in the short-term.
It revised its guidance as “macroeconomic conditions have further deteriorated”.
READ MORE: Zalando buys online magazine Highsnobiety
Zalando now expects Gross Merchandise Volume to grow 3%-7% to £12.70 billion – £13.13 billion for the financial year 2022.
Revenue is expected to grow 0%-3% to £8.92 billion – £9.18 billion with an adjusted EBIT of £154 million – £223 million in the same period.
For the second quarter 2022, the company expects Gross Merchandise Volume growth, revenue growth and adjusted EBIT to be significantly below analyst estimates.
Zalando is also introducing a minimum order value across 15 additional markets.
Zalando co-chief executive Robert Gentz said: “While this new environment is creating a negative impact on our financial performance, our strategy and long term goals are unchanged. Our vision remains to be the starting point for fashion in Europe.
“There are many untapped opportunities in the fashion market that we can capture and are committed to change the industry for the better.
“By driving efficiencies across the company and selectively investing through-cycle, we will be even better positioned long-term to execute against our strategy. We are embracing the challenges and adapting to emerge stronger.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
