While UK retailers recieved a slight sales boost during July, according to the British Retail Consortium, it's not been as good for Zalando, the online clothing seller.
Its shares are down more than 2.5% despite its sales and underlying earnings increasing, allowing it to reaffirm its full-year guidance.
Revenues lifted 3.4% to £2.2 billion, while underlying earnings rose 18% to £147.1 million, leading management to reiterate expectations that annual sales will rise between 0% and 5%, while profit hit between £326 million and £386 million.
"By continuing to focus on the premium and sportswear segments of the apparel market, Zalando continues to differentiate itself from other online fashion retailers such as Shein and About You, allowing it to target a different consumer base away from young shoppers looking for affordable fast fashion," said Louise Deglise-Favre at Global Data.
"Zalando’s Business-to-Business (B2B) segment rose 10.3% in Q2, as it continued to attract new retailers thanks to its comprehensive offering which allows its partners to leverage the platform’s expertise in logistics, software technology and services.
"While this division is still in its infancy, representing a minor share of Zalando’s revenue, it has the potential to be highly lucrative as more retailers look to strengthen their online propositions but lack the skills and resources to do so.”