(AOF) – Zalando fell 13.8% to 22.01 euros, penalized by a significant “profit warning”. The German group specializing in online clothing distribution has revised down its forecasts for the second quarter as well as for the full year. The ready-to-wear company points to a deterioration in macroeconomic conditions, marked in particular by the further decline in consumer confidence in Europe.
The group’s previous outlook issued at the beginning of last month indicated that the forecast for the full year was at the low end of the range, given the difficulties expected, but also the first signs of a possible recovery. Zalando now expects the macroeconomic challenges to be longer lasting and more intense than expected.
For the second quarter, the growth in gross volumes, the growth in sales and the level of Ebit will be significantly below analysts’ expectations.
As of May 31, the consensus was for gross merchandise volume growth of 5%, revenue growth of 1.5% and adjusted Ebit of 104 million euros.
Zalando warns that this second quarter will be profitable, but less than expected.
For the full year, growth in gross merchandise volumes should be between 3% and 7% for an amount between 14.8 and 15.3 billion euros. The company had previously forecast growth of around 16%.
Turnover is expected to increase by 0% to 3% to reach between 10.4 and 10.7 billion euros. The group expected early May growth of 12% to 19%.
Adjusted Ebit should come out between 180 and 260 million euros and no longer between 430 and 510 million.
Finally, investments will be in a range of 350 to 400 million euros, against between 400 and 500 million previously.