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Zalando sees growth in the second quarter and spends more on marketing as the blockage becomes easier.

Share with The Land It fell on Thursday after a German online fashion retailer said it spent more on marketing to keep customers shopping online as stores reopened as the coronavirus blockade was eased.

The Land

Europe’s largest fashion e-commerce player said customers attracted during the first lockdown in 2020 were still active buyers after the restrictions expired, with 44.5 million active users at the end of June. I did.

However, the company said it had increased its marketing investment in the second quarter after shrinking ads a year ago due to a surge in demand during the first wave of the pandemic.

Second-quarter sales were € 2.73 billion ($ 3.24 billion) and adjusted operating profit was € 184.1 million, both in line with average analysts’ expectations. Zalando shares fell 4.5% in early trading.

UK rival ASOS shares fell last month when they warned that recent sales growth had slowed due to uncertainty in the direction of COVID-19 and bad weather.

Zalando forecasts full-year sales growth of 26-31% to € 10.1-10.5 billion and currently has adjusted Earnings before Interest and Tax (EBIT) of € 400-475 million with guidance. He said he expects to reach the upper half of the range. ..

Zalando also connected 4,700 physical stores to the platform. This is an accelerated initiative during a pandemic.

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Zalando sees growth in the second quarter and spends more on marketing as the blockage becomes easier.

Source link Zalando sees growth in the second quarter and spends more on marketing as the blockage becomes easier.

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