Last week, Zalando reported a 58 per cent drop in second-quarter adjusted operating profit but said it expected better profitability in the second half of 2022.
The German online clothing group’s volume of business remained stable at 3.8 billion euros in the quarter, compared to the same period a year earlier, while sales fell four per cent to 2.6 billion euros.
Adjusted operating profit (Ebit) fell to 77.4 million euros, compared to 184.1 million euros the previous year, but it is up compared to the first quarter in which Zalando recorded a loss of 52 million euros.
The company said it
was impacted by falling consumer confidence, inflation and supply bottlenecks
that hit demand after record results in 2021 during the coronavirus
pandemic. “Life is getting more expensive and consumers are reluctant to
buy. We can feel it,” Co-Chief Executive Robert Gentz said Thursday.
To reduce costs, the company said it had lowered marketing expenses, introduced
a minimum order value and improved the efficiency of its European logistics
network.
