Zalando boxes. Shutterstock.
German online fashion retailer Zalando reported a slump in quarterly profit on Wednesday as it offered discounts to try to keep customers shopping online after physical stores reopened following the easing of coronavirus lockdowns.
It said there was a “fierce promotional environment” in many European markets, adding that unusually warm weather in September had kept a lid on demand for full-price fall/winter items and increased sales of discounted spring/summer fashion.
Zalando shares were down 2.7 percent at 0840 GMT.
However, as temperatures dropped in October, Europe’s biggest fashion e-commerce player saw demand recover for seasonal wear. “We are off to a very good start to Q4,” finance chief David Schroeder told journalists.
With many fashion brands hit by the closure of Asian factories due to coronavirus lockdowns, Schroeder said Zalando was well stocked for the next few months but it could see delays to deliveries of spring/summer