September 18, 2018 / 5:00 AM / 3 months ago

Zalando slashes guidance again due to summer heat wave

BERLIN, Sept 18 (Reuters) - Zalando, Europe’s biggest pure online fashion retailer, cut its 2018 guidance for a second time in as many months, saying the unusually hot summer and a delayed switch to the fall/winter season weighed on revenue growth and earnings.

The group now expects revenue growth around the low end of its 20 percent to 25 percent target corridor, compared with a previous forecast for a figure in the lower half of the range, it said late on Monday.

It now sees adjusted earnings before interest and tax (EBIT) between 150 million euros and 190 million euros ($175 million-$222 million), compared with the previous guidance at the low end of a 220 million euros to 270 million euros range.

The hot summer had already prompted Zalando, launched in Berlin in 2008, to trim its outlook on Aug. 7, when it said that the traditional discounting at the end of the summer season would likely be more pronounced than usual due to the weather.

For the third quarter, which ends on Sept. 30, it expects revenue growth and adjusted EBIT to be significantly below analyst consensus for 19.8 percent and minus 2 million euros, respectively.

“Despite the revised guidance, revenue growth continues to significantly outperform the overall fashion market,” the group said.

Zalando is due to publish full third-quarter financial results on Nov. 6.

$1 = 0.8550 euros Reporting by Maria Sheahan; Editing by Subhranshu Sahu

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