Zalando has issued an update for Q2 2022 and revised its guidance for the financial year 2022 due to a further deterioration in macroeconomic conditions during the second quarter, with the EU consumer confidence index decreasing further in June, the company said. The Berlin-based online platform for fashion and lifestyle expects macroeconomic challenges to be longer-lasting and more intense than previously anticipated. The second quarter is profitable but weaker than expected. The company now expects revenues to grow between 0 and 3 percent for the financial year 2022, GMV to grow between 3 and 7 percent to €14.8-15.3 billion, and an adjusted Ebit of €180-260 million in the same period. The revised full-year outlook implies a growth acceleration and a significant improvement in profitability in the second half of 2022, driven by the ongoing company efforts to adjust the offer to changing customer demand and to drive efficiencies across all cost lines, said Zalando. The first efficiency measures successfully implemented in the second quarter included a reduction in the marketing investments to increase return on investments, an adjustment of logistics infrastructure investments, and the introduction of a minimum order value (MOV) in 15 additional markets. The financial figures for the second quarter will be released on Aug. 4.

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