The Zalando share price is being weighed down by a cut in its sales forecast.

Last Updated: 5. November 2023By

In a turbulent year of 2023, Zalando has now presented its quarterly figures for the months of July to the end of September. And these had both light and shadows to offer. What stands out most at first glance is the lowered sales forecast for the full year – the Zalando share is therefore losing this morning.

Since the beginning of the year, the Zalando share has lost significantly and is almost 40 percent lower. After a weak September, the paper had at least stabilized again. And now? Many investors and analysts still see opportunities for a positive share price development at the Zalando share, because the cost-cutting measures have taken effect. Goldman Sachs has also confirmed its more optimistic forecast.

Zalando with mixed Q3 figures In the 3rd quarter, the Berlin-based fashion mail order company achieved sales of 2.3 billion euros, a good 3 percent lower than in the same period last year – the gross merchandise volume (GMV) was 3.2 billion euros, 2.4 percent lower. But the cost savings are having an effect in the bottom line: in Q3, the adjusted EBIT climbed from 14 million euros to a good 23 million euros, despite lower sales.

After the latest figures, the DAX company has adjusted its forecast for the full year of 2023. Zalando still expects an adjusted EBIT of between 300 and 350 million euros. However, the targets for GMV and sales have been reduced.

The forecast for annual sales is now 10 to 10.3 billion euros (minus 0.5 to minus 3 percent compared to 2022 – previously the forecast was minus 1 to plus 4 percent). The GMV is expected to be between 14.5 and 14.9 billion euros (minus 2 to plus 1 percent compared to 2022 – previously: 1 to 7 percent growth).

Zalando share: weak demand, more profitability Although the fashion retailer is still struggling with weak demand in the current environment – and this could continue into Q4 – Zalando has significantly improved its profitability through cost savings. If demand recovers in 2024, there will be opportunities for the Zalando share.

The paper has potential after the weak performance of the last months and years. The course of the Corona boom years 2020 and 2021 is probably not achievable in the foreseeable future, but the majority of analysts still see buying prices for the Zalando share. An example: After the Q3 figures, Goldman Sachs confirmed its buy recommendation as well as the target price of โ‚ฌ35.