**Zalando’s Second Quarter Encounters Setbacks**.
German online fashion retailer Zalando has released its second-quarter results, revealing a challenging period for the company. Despite maintaining its overall growth trajectory, Zalando faced a slowdown in its core markets, leading to a decline in its gross merchandise volume (GMV)..
**Key Performance Indicators**.
* GMV decreased by 0.4% year-over-year to €3.4 billion, marking the first time the company has experienced a decline in this metric since its inception..
* Revenue grew by 1.6% to €2.9 billion, primarily driven by strong performance in smaller markets outside of Germany, Austria, and Switzerland..
* Active customer base expanded by 4.7% to 52.5 million, indicating continued customer acquisition..
**Market Challenges**.
Zalando attributed the GMV decline to several factors, including:.
* **Macroeconomic headwinds:** Inflationary pressures and the ongoing war in Ukraine impacted consumer spending..
* **Shifting consumer behavior:** Post-pandemic, consumers are returning to in-store shopping and spending less on online purchases..
* **Increased competition:** The fashion e-commerce market has become increasingly saturated, with both established and emerging players competing for market share..
**Regional Performance**.
Zalando’s core markets of Germany, Austria, and Switzerland experienced a 2.5% decline in GMV. However, the company reported strong growth in other European regions, with the Nordics, Southern Europe, and Central Europe all showing double-digit GMV increases..
**Cost Control Measures**.
In response to the challenging market conditions, Zalando has implemented cost control measures to mitigate the impact on its profitability. The company plans to reduce operating expenses by €250 million in the second half of the year..
**Outlook**.
Zalando remains cautious about the remainder of the year, citing the ongoing macroeconomic uncertainties. The company expects GMV growth to be in the low single digits for the full year..
**CEO’s Statement**.
Robert Gentz, Zalando’s co-CEO, commented on the results: .
