Zalando, the German e-tailer, saw its Q1 revenue drop by 1.5 per cent, while making a loss of €50 million.
The European online fashion bigwig has attributed the fall to fashion consumers becoming cautious owing to increase in costs.
The e-tailer has now warned that sales and profits for the full year will be below expectations.
While the gross merchandise value (GMV) sales were up by just 1 per cent to clock €3.2 billion in Q1, total sales dipped by 1.5 per cent. Notably, the e-tailer made a €51.8 million loss during the period.
Zalando, reportedly, stated that it now expects sales to hit the lower end of its 12 per cent to 19 per cent range, with adjusted EBIT to slump at the lower end of its €430 to €510 million range. The period also saw Zalando’s active customers increase by 5.2 per cent to around 49 million.
The e-tailer is hopeful of hitting the target of 30 billion GMV by 2025.
Founded in 2008, Berlin-based Zalando also has offices (tech hubs) in Dublin, Ireland; Dortmund, Germany and Helsinki, Finland.
