**Zalando Q2 Revenue Misses Estimates as Shoppers Cut Back**
**Zalando’s revenue growth slowed significantly in the second quarter as shoppers cut back on discretionary spending amid rising inflation and economic uncertainty.**
**Key Highlights**
* **Revenue** grew 4.2% year-over-year to €3.7 billion, below analyst estimates of €3.8 billion.
* **Gross merchandise volume** (GMV) increased by 5.4% to €6.1 billion.
* **Orders** rose by 2.9% to 64.2 million.
* **Active customers** increased by 7.2% to 55.4 million.
* **Adjusted EBIT** declined by 57.8% to €52.7 million.
**Challenges and Outlook**
Zalando cited several challenges in the quarter, including:
* The ongoing war in Ukraine
* Rising inflation
* Supply chain disruptions
* A shift in consumer spending towards essential goods and services
Despite the challenges, Zalando remains optimistic about the long-term growth prospects of e-commerce in Europe. The company is investing heavily in its platform and logistics network to meet the evolving needs of its customers.
Zalando expects revenue growth to accelerate in the second half of the year, driven by the launch of new categories and the expansion of its fulfillment network. The company also expects to improve its profitability in the second half, as it benefits from cost-saving initiatives and a more favorable product mix.
**Analyst Commentary**
Analysts were mixed in their reactions to Zalando’s Q2 results. Some analysts expressed concerns about the company’s ability to maintain growth in the face of economic headwinds, while others remained positive about Zalando’s long-term prospects.
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