Zalando Lowers 2023 Sales Forecast Amid Ongoing Weak Demand, Reduced Online Shopping

Facing weak consumer sentiment and increasing competition, Zalando predicts a contraction of revenue by 0.5-3% for 2023; its stocks have lost a third of their value since the beginning of the year.

• Europe's largest online fashion retailer, Zalando, has revised down its 2023 sales forecast, expecting a fall of between 0.5% and 3% due to weak demand.
• The uncertain consumer sentiment and a warmer September negatively impacted autumn and winter clothing sales, causing a 3.2% decrease in third-quarter revenue from the previous year.
• Zalando's shares lost a third of their value since the start of the year, as consumers returned to physical stores and reduced their online shopping after pandemic restrictions were lifted.
• Despite a decline in overall sales, Zalando's gross merchandise value shrank 2.4% and the company has moderated its 2023 forecast for this metric to between -2% and 1%, down from an initial prediction within the lower half of the 1% to 7% range.
• As part of its plan to tackle increasing competition, Zalando is expanding its luxury brands offering and introducing a new 'boutique-style' space for designer brands.

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