Zalando has warned revenue and gross merchandise value growth in the first quarter will fall below analyst’s expectations as consumers rein in spending during the coronavirus pandemic.
Analysts had previously predicted a 19% rise in revenue and 22.8% growth in gross merchandise value at the German etailer.
In a statement, Zalando’s management board said: “The resolute and necessary measures taken by European governments have certainly negatively impacted our business. As consumers adapt their behaviour to the new situation and cut back on discretionary spending in the short term, we have seen a negative impact on sales since the lockdowns in several countries. This is also affecting our bottom line. On this basis, we have taken measures to adjust our commercial steering, our spending and investment activities as well as our financial plan for the year to the new circumstances.”
The etailer added that it had been in “close contact” with brand partners and believes it has been less effected by the pandemic than other fashion businesses.
Zalando has also said it will keep warehouse and distribution centres open through the coronavirus crisis, while adhering to new government guidelines.
It has introduced social distancing “through closing public places and encouraging working from home where possible”.