Online fashion giant Zalando has recorded a decrease in group revenue and is reviewing its guidance as it expects “continued pressure on demand” for the remainder of the financial year.

Zalando boxes

Group revenue slipped 3.2% to €2.27bn (£1.98bn) while gross merchandise volume declined 2.4% to € 3.2bn (£2.79bn) in its third quarter.

The group said this was due to “a challenging macroeconomic environment of low consumer sentiment and declining online sales”, as well as warm weather across Europe in September. 

Adjusted EBIT increased to €23.2m (£20.2m), an increase of 72% compared to the same period last year, and was said to be “boosted by lower fulfilment costs”.

Zalando said it is adjusting its full-year guidance so revenue is to develop between -3% and -0.5% in 2023 compared to it originally being set at -1% to 4%.

Zalando chief financial officer Sandra Dembeck said: “Storytelling, logistics and technology are key to boost our future growth. Our healthy balance sheet gives us the financial flexibility to make these strategic investments.

“On top of that, our financial discipline meant that we were able to deliver on another quarter of improved profitability.”