Zalando SE confirmed its targets for the year after posting higher revenue for the third quarter even as consumers shopped less due to elevated inflation and recession risks, but said sales and earnings should come at the lower end of its forecasts.
The German online retailer
ZAL,
said Thursday that revenue for the July–September period climbed to 2.35 billion euros ($2.31 billion) from EUR2.28 billion last year.
Gross merchandise volume–a key indicator of sales growth–jumped 7.1% to EUR3.28 billion.
Zalando said its move to introduce a minimum order value had pushed customers to increase the size of their basket or pay a delivery fee, making orders below the minimum order value profitable even as consumers shopped less.
Adjusted earnings before interest and taxes–a key profitability metric for Zalando–rose to EUR13.5 million from EUR9.8 million.
Zalando’s net loss widened to EUR35.4 million for the quarter. It reported a loss of EUR8.4 million the prior-year quarter.
For the year, Zalando is still targeting sales growth of up to 3%, gross merchandise volume rising by 3%-7%, and adjusted earnings between EUR180 million and EUR260 million. However, these should come at the lower end of forecasts, it said.
Write to Mauro Orru at [email protected]; @MauroOrru94
