Zalando Posts First Decline in Sales Since Founding

21 March 2022, Berlin: The logo of the online retailer Zalando on a company building. (dpa)
21 March 2022, Berlin: The logo of the online retailer Zalando on a company building. (dpa)
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Zalando Posts First Decline in Sales Since Founding

21 March 2022, Berlin: The logo of the online retailer Zalando on a company building. (dpa)
21 March 2022, Berlin: The logo of the online retailer Zalando on a company building. (dpa)

Zalando posted a decline in sales for the first time since the German online fashion retailer was founded, leading it to dim its outlook for 2022 on Thursday.

First-quarter sales fell by 1.5%, to 2.2 billion euros ($2.33 billion), after posting a 46.8% increase in the same quarter last year thanks to the coronavirus pandemic.

"The main issue is that people just aren't into buying fashion," said co-Chief Executive Officer Robert Gentz with a view to high inflation and the war in Ukraine.

For the three months from January to March, the company reported an adjusted operating loss of almost 52 million euros, compared with a year-earlier profit of 93 million euros.

Zalando now sees 2022 sales growth coming in at the lower end of the forecast range of 12% to 19%, and adjusted earnings before interest and taxes would at the lower end of the expected range of 430 million to 510 million euros.

"We believe in the strength of our business model and are taking further actions to improve our results," said Gentz, who added that he expects significant acceleration of business in the second half of the year.

Zalando, along with Asos and Boohoo, was one of the winners of the coronavirus crisis as people had to go online to purchase clothes and cosmetics due to shop closures.

As pandemic restrictions have eased, people are returning to in-store shopping, which is why Zalando was only able to increase its number of customers slightly compared to the previous quarter, to 48.8 million.



Puma Shares Dive After Warning of Full Year Loss 

 A view of a logo at the PUMA flagship store in New York City, US, July 16, 2025. (Reuters)
A view of a logo at the PUMA flagship store in New York City, US, July 16, 2025. (Reuters)
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Puma Shares Dive After Warning of Full Year Loss 

 A view of a logo at the PUMA flagship store in New York City, US, July 16, 2025. (Reuters)
A view of a logo at the PUMA flagship store in New York City, US, July 16, 2025. (Reuters)

Puma's shares were seen down around 20% in early trade on Friday after the German sportswear brand slashed its full-year outlook and posted weaker-than-expected quarterly results on Thursday, citing increased currency headwinds and impacts from US tariffs

The company now expects an earnings before interest and taxes (EBIT) loss for 2025.

It also expects annual sales to decline by a low double digit percentage, having previously forecast of low-to mid single digit-growth.

US President Donald Trump's sweeping tariffs and uncertainty over his trade policies have sent global markets into a tailspin and significantly dampened investors' economic optimism.

Analysts at J.P. Morgan said in a note that Puma's quarterly results and revised outlook came in significantly lower than the broker's expectations.

"We expect consensus earnings per share (EPS) to come down accordingly following the revised guidance and expect a negative share reaction as the market opens," analysts added.

Puma will host a press conference and analyst calls on Friday.