Zalando, the German online fashion retailer, warned that full-year sales and profits will be hit as it reported a loss in its first-quarter trading statement.
The online retailer reported a loss of €51.8mln during the quarter, with rising inflation and an increase in input costs being the main reasons for the performance in the first three months.
Sales are now expected to be at the lower end of its 12%-19% guidance range, with adjusted underlying earnings (EBITDA) to fall at the lower end of €430mln-€510mln.
In efforts to manage the short-term challenges, the company said it was “refining its offering to adjust to the changing spending patterns of its customers.”
Also, to resolve the long delivery times that have dogged most online fashion retailers, such as boohoo and Asos, the company is investing in fulfilment centres across Europe.
“Our business fundamentals are strong, and we are taking steps to improve our results,” said Zalando co-chief executive Robert Gentz.
“We are managing Zalando for the long term and have always used our business agility and adaptability to successfully respond to short-term challenges and consumer demand to emerge better and stronger.”