By Shares in Zalando, the German online fashion retailer, experienced an upward trend on Thursday following the company’s announcement of revenues that met market expectations. Additionally, Zalando disclosed its anticipation of achieving adjusted earnings in 2023 at the upper end of its previously stated range.
As of 08:55GMT, Zalando’s shares traded 8.4% higher at EUR31.77.
Zalando reported a 2.5% decrease in revenue for the second quarter, amounting to 2.56 billion euros ($2.80 billion). Furthermore, the company’s gross merchandise volume, a vital indicator of sales performance, fell by 1.8% to EUR3.72 billion.
The preferred profitability measure for Zalando, adjusted earnings before interest and taxes, notably increased from EUR77.4 million to EUR144.8 million, resulting in a 5.7% margin.
Despite the year-on-year declines in gross merchandise volume and revenue, Stifel analysts noted that these figures aligned with their estimates as well as with industry expectations. Furthermore, adjusted EBIT exceeded the consensus collected by the company by 11% and surpassed the forecasts of the U.S. investment bank by 16%.
While Zalando adjusted its revenue outlook for 2023, it now projects adjusted earnings ranging between EUR300 million and EUR350 million, thus expanding on the previously guided range of EUR280 million to EUR350 million.
Stifel analysts affirmed that these results reinforce their investment case for Zalando, stating that they do not foresee any significant changes to consensus estimates at this stage.
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