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Online Fashion Retailer Zalando's First-Quarter Sales Surge

German online fashion retailer Zalando’s on Tuesday said revenue soared by 46-48% in the first quarter, boosted by coronavirus lockdowns. (Reuters)
German online fashion retailer Zalando’s on Tuesday said revenue soared by 46-48% in the first quarter, boosted by coronavirus lockdowns. (Reuters)
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Online Fashion Retailer Zalando's First-Quarter Sales Surge

German online fashion retailer Zalando’s on Tuesday said revenue soared by 46-48% in the first quarter, boosted by coronavirus lockdowns. (Reuters)
German online fashion retailer Zalando’s on Tuesday said revenue soared by 46-48% in the first quarter, boosted by coronavirus lockdowns. (Reuters)

German online fashion retailer Zalando’s on Tuesday said revenue soared by 46-48% in the first quarter, boosted by coronavirus lockdowns.

Europe’s biggest online-only fashion retailer’s preliminary first-quarter figures said sales totaled 2.22-2.26 billion euros ($2.67 billion-$2.72 billion), while gross merchandise volume (GMV) - sales on its site made by the company or its partners - rose by more than half to 3.13-3.17 billion euros, Reuters reported.

Last month, Zalando said it expected GMV to increase by 27%-32% to between 13.6-14.1 billion euros in 2021.

For the first quarter of 2021, Zalando said it expected adjusted earnings before interest and tax of 80-100 million euros, versus a loss of 98.6 million euros in the year-earlier period.

Zalando plans to publish full first-quarter results on May 6.

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Hugo Boss Sees Broadly Stable 2025 Sales, Flags Muted Demand in 1st Quarter

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
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Hugo Boss Sees Broadly Stable 2025 Sales, Flags Muted Demand in 1st Quarter

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo

Hugo Boss said muted consumer sentiment was having an impact on its business in the current quarter as it forecast 2025 sales broadly in line with last year's level on Thursday.
The upmarket fashion company has sought to boost the popularity of its brand through selected marketing investments, while increasing profits by limiting costs, despite weakening consumer demand and a polarization of consumer preferences towards either high-end luxury or cheaper fast-fashion offers.
It sees annual sales development between a 2% decline and a 2% increase, to a range of 4.2 billion to 4.4 billion euros ($4.57 billion to $4.79 billion), following 3% growth to 4.3 billion euros in 2024, Reuters reported.
"Macroeconomic and geopolitical volatility remains high, weighing on consumer sentiment and impacting our business performance since the beginning of the year," CEO Daniel Grieder said in a statement.
Analysts had estimated annual sales of 4.26 billion euros for 2024 and 4.44 billion euros for 2025, a company-provided poll showed.
The Hugo Boss shares were up 3.8% in early Frankfurt trade despite the cautious comments, with Baader Helvea's analyst Volker Bosse pointing to a solid outlook for operating profit.
The company expects full-year earnings before interest and taxes (EBIT) to rise between 5% and 22%, coming in between 380 million and 440 million euros, compared to a 12% decline to 361 million euros last year.
At its midpoint, the guidance would imply EBIT of 410 million euros, against analysts' estimate of 414 million euros.
The company also said sales growth was "particularly robust" in the last three months of 2024, boosted by a successful holiday season.
Group sales were 1.25 billion euros in the fourth quarter, beating analysts' expectations of 1.20 billion euros, with currency-adjusted sales in the Americas region rising 8% helped by a high single-digit percent uptick in the key US market.
"Sales in China remained below the prior-year level, reflecting overall muted local consumer demand," it added.