German fashion webshop Zalando has lowered its first-quarter forecast, as its sales have dropped significantly due to the measures implemented in many European countries in the fight against the coronavirus.
For its first quarter, the German fashion company is forecasting revenue growth well below the 19?% expected on average by analysts. Adjusted operating income will also be much lower than expected, due to the one-off depreciation of the company's inventories.
In addition, the online clothing retailer is abandoning its outlook for the whole of 2020. Given the current situation, the company assumes that it will not be able to achieve its previously issued forecast. As soon as the course of the coronavirus pandemic can be estimated more reliably, Zalando will formulate a new outlook.
At the same time, the company also announces that it wants to help physical retailers in these difficult times, as they have been even more affected by the covid-19 crisis. "With the Connected Retail program, physical retailers can connect with the Zalando platform and sell their products directly to our online customers", vice-president direct to consumer Carsten Keller said in a press release.
Zalando temporarily eliminates commissions for both new and existing partners. In addition, the company will switch from a monthly to a weekly payment schedule to help retailers alleviate their financial difficulties and contribute to their liquidity. The special offer is valid only in April and May and only applies to brands and physical retailers in Germany and the Netherlands. The programme currently has 1500 partners.