- Prachi Singh |
Zalando SE expects its results for the first quarter to be significantly below the analysts’ consensus of March 11, which did not yet take into account the effects of the coronavirus. The company said in a statement that this is due to lower discretionary spending by European consumers as a result of the measures taken by European governments since March 9 against the spread of the coronavirus.
The company expects revenue and gross merchandise volume (GMV) growth to be significantly below the analysts’ consensus of March 11, despite a strong start to the year. The company added that adjusted EBIT is also negatively impacted by lower sales growth in the first quarter and an exceptional write-down of inventories as a result of the revised sales expectations for the current season.
The median of the analysts’ consensus as of March 11, 2020 was 19 percent for revenue growth, 22.8 percent for GMV growth and adjusted EBIT of negative 28 million euros. Based on the current situation, the company assumes that the published forecast cannot be achieved.