Zalando has revealed that revenues fell 4% to €2.6 billion in its second quarter as operating profits drop 58%. The retailer attributed the drop in revenues to the process of transitioning the business to a new platform model. On top of this, the online retailer highlighted external factors such as low consumer confidence and rising costs due to inflation. Despite this fall in revenue and profit, Zalando is still expecting the second half of the year to see a return to growth as its number of active customers jumped 11% in Q2.
Co-chief executive Robert Gentz said: “We have demonstrated our agility as a team, showing that we can react quickly to adapt to the current environment while also making the experience of our customers even more inspiring and engaging.”