BERLIN (Reuters) -Online fashion retailer Zalando on Thursday reported a 58% drop in second-quarter operating profit and lower sales but said it expected to return to growth and improved profitability in the second half of the year.
Zalando’s gross merchandise volume was flat at 3.8 billion euro ($3.86 billion) in the quarter compared with the same period last year, while sales fell by 4% to 2.6 billion euro.
Adjusted operating profit (EBIT) dropped to 77.4 million euros from 184.1 million euros in year-earlier period, but they were up on the first quarter, when Zalando reported an operating loss of 52 million euros.
The company cited lower consumer confidence, inflation and supply bottlenecks hitting demand after the coronavirus pandemic helped it record a bumper year in 2021.
Zalando confirmed guidance revised down in June, forecasting a sales increase between 0% and 3% and an adjusted EBIT of 180 million to 260 million euros.
($1 = 0.9841 euros)
(Reporting by Riham Alkousaa; Editing by Maria Sheahan)
