**Zalando Faces a Second Quarter Slump**.
**Berlin, Germany -** Zalando, the leading European online fashion retailer, has reported a disappointing performance in the second quarter of 2023, with a decline in both revenue and profits..
**Key Financial Highlights:**.
* **Revenue:** €3.1 billion, a decrease of 4.4% year-over-year (YoY).
* **Gross merchandise volume (GMV):** €4.3 billion, down 3.9% YoY.
* **Adjusted earnings before interest and taxes (EBIT):** €85.5 million, a significant drop of 65.3% YoY.
* **Net income:** €48.8 million, a decrease of 63.4% YoY.
**Factors Contributing to the Decline:**.
Zalando attributed the slump to several challenges, including:.
* **Economic downturn:** The ongoing global economic slowdown has reduced consumer spending on non-essential items, including fashion..
* **Inflationary pressures:** Rising costs of living have forced consumers to prioritize essential purchases over discretionary expenses..
* **Increased competition:** The e-commerce market has become increasingly competitive, with new entrants and traditional retailers expanding their online presence..
* **Supply chain disruptions:** Ongoing supply chain issues have caused delays and product shortages, affecting the timely delivery of orders..
**Management’s Response:**.
Despite the disappointing results, Zalando’s management expressed confidence in the company’s long-term prospects. The company emphasized its focus on cost optimization and operational efficiency to mitigate the impact of economic headwinds..
Robert Gentz, Zalando’s co-CEO, stated: .
