Zalando's outlook for 2023 was less than optimistic after Europe's biggest online fashion retailer hit the lower end of its full-year target range today, citing a more difficult economic environment since the coronavirus pandemic.
The company reported 2022 revenue of €10.34 billion, down 0.1% from a year before and in line with updated guidance provided in November.
It said it now expected a revenue range of minus 1 to plus 4% for 2023.
Zalando said that it would continue to focus on improving profitability in 2023, including by cutting several hundred jobs across many of Zalando's teams.
"As consumers went back to in-store shopping post pandemic, e-commerce adoption reversed more than initially expected, albeit at higher levels than pre-pandemic," it said.
Full-year adjusted group earnings before interest and tax (EBIT) slumped 60.1% to €184.6m, said the company, while gross merchandise value (GMV) grew by 3%, to €14.8 billion.
The company said it now expects adjusted EBIT of between €280-350m this year and GMV to increase by 1-7%.
