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(Sharecast News) - Shares in German online fashion retailer Zalando dropped sharply on Tuesday after second-quarter results and full-year guidance disappointed investors.
Gross merchandise volumes totalled 4.92bn in the second quarter, while group revenues reached 3.42bn, with both measures rising nearly 21% year-on-year.
However, growth still came up short of analysts' expectations, missing the consensus forecasts of 4.94bn and 3.50bn, respectively.
Adjusted EBIT rose to 204.8m from 185.5m, shy of the 215m expected by the market, with the adjusted EBIT margin slipping to 6.0% from 6.5%.
Looking ahead, the firm said GMV and revenue growth for the full financial year would likely be in the lower half of its previous 12-17% range. Adjusted EBIT guidance was narrowed to 680m-720m from 660m-740m.
"Zalando's view of second-half trading dynamics is unchanged, and the full-year guidance refinement reflects the first half already delivered and not a change in expectations for the remainder of the year," the firm said in a statement.
The company expressed confidence in recent investments into AI, such as the launch of AI-powered fashion and lifestyle content studio SCAYLE STUDIOS, which moves brands from sample to production-ready imagery significantly faster, shortening the time-to-market by more than 95%, it explained. It has grown to over 100 live brands.
"Our fast-scaling AI capabilities are already delivering measurable benefits in driving both growth and efficiency across B2C and B2B," said co-chief executive Robert Gentz.
"Innovations like our AI-powered SCAYLE STUDIOS and the upgraded Zalando Assistant are fundamentally transforming how our partners operate and how our customers discover fashion."
Zalando shares were down 13.9% at 25.06 by 1305 BST.
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