**Zalando Faces a Second Quarter Slump**
**Zalando, a leading European online fashion retailer, has reported a decline in its second-quarter revenue and profitability due to a combination of macroeconomic headwinds and operational challenges.**
**Key Financial Highlights:**
* Revenue decreased by 3.9% year-over-year to €2.9 billion, missing analyst expectations.
* Adjusted earnings before interest and taxes (EBIT) fell by 42.9% to €117.8 million.
* Net income dropped by 44.2% to €69.8 million.
**Factors Contributing to the Decline:**
* **Economic Headwinds:** The ongoing war in Ukraine, rising inflation, and the cost-of-living crisis have significantly impacted consumer spending, particularly in Zalando’s core markets of Germany and France.
* **Operational Challenges:** Zalando has faced operational inefficiencies, including supply chain disruptions and warehouse capacity constraints, which have led to increased costs and delivery delays.
* **Increased Competition:** The online fashion retail landscape has become increasingly competitive, with new entrants and established players vying for market share.
**Management Commentary:**
Robert Gentz, co-CEO of Zalando, acknowledged the challenging operating environment but expressed confidence in the company’s long-term prospects.
.
