Zalando also feels the end of lockdowns: more than half profit | Economy

Zalando also feels the end of lockdowns: more than half profit |  Economy

Zalando, which has grown rapidly through lockdowns, has seen its profits drop by more than half last year. After all, consumers often go to physical stores to buy clothes. Therefore, the company does not exclude the possibility that it will have to record a small loss in its sales volume this year.

Earnings before tax and interest amounted to 184.6 million euros last year. This is less than half of the 468.4 million compared to the previous year. The final net profit, including extraordinary income and expenses, was €16.8 million. This was just a fraction of the 234.5 million in the previous year. The turnover was about 10.3 billion euros, which is almost the same as in 2021.

Zalando assumes that it will achieve a slight growth in sales volume of a maximum of 4 percent this year, but the Germans are also taking into account a possible contraction of 1 percent. The profit is expected to range between 280 and 350 million euros.

Due to the disappointing results, Zalando recently announced that it will cut hundreds of jobs. This mainly affects management.

The webstore certainly isn’t the only company that has seen its results decline due to the end of the lockdown. For example, PostNL announced last week that it would cut hundreds of jobs because there may be fewer packages to deliver. Many people are also having to leave big tech companies like Meta, parent Amazon and Facebook, while has also announced a round of layoffs.

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