The coronavirus pandemic hits Zalando, Europe’s largest online fashion retailer. The Berlin-based company announced on Monday evening that an adjusted operating loss of well over 28 million euros would result in the first quarter. The annual forecast is also no longer maintainable.
That is why Zalando now humble. Expenditures and investments as well as the financial planning have been adapted to the new circumstances, the board wrote in a letter to the employees. No details were given.
Zalando is launching a number of initiatives to save the business. Until the end of May, new and existing retailers who sell their goods via the Zalando platform do not pay a commission.
In addition, the company listed in the MDax wants to take 100 million euros in hand to pay partners before the contractually agreed deadline and thus keep them liquid.
The Zalando board referred to the founding of the company in the 2008 financial crisis and the experience gained since then: “Even in this challenging time, there are many reasons to be confident. We are convinced that the investments we have made in the past decade have created all the conditions necessary to weather this crisis well. ”
Zalando gives concrete insight into the first quarter on April 16. On average, analysts had forecast sales growth of 19 percent and an adjusted operating loss of 28 million euros for the first quarter.
According to Zalando, this will not be possible. In the same period of the previous year, growth of 15 percent and an operating profit of five million euros were enough.
For the year as a whole, Zalando will now perform significantly worse than in 2019, when revenues rose by 20.3 percent. The group only wants to make a new forecast if it is foreseeable how the coronavirus pandemic will develop. Due to the crisis, the Annual General Meeting scheduled for May 20 is also postponed.
More: The German fashion industry is demanding a liquidity fund of 850 million euros.