**Zalando Faces a Second Quarter Slump**
**Zalando**, the German online fashion retailer, has reported a disappointing second quarter, with revenue growth slowing and profitability declining.
**Key Financial Highlights**
* Gross merchandise volume (GMV
)
grew by 3.4%, a significant slowdown from the 33.4% growth reported in the same period last year.
* Revenue increased by 4.2% to €3.1 billion, below analyst expectations.
* Adjusted earnings before interest and taxes (EBIT) fell by 44.5% to €117.4 million.
* Net income plummeted by 77.4% to €24.7 million.
**Factors Contributing to the Slump**
Zalando attributed the second quarter slump to several factors, including:
* **Rising inflation and consumer uncertainty**: Consumers are becoming more price-sensitive and cautious about spending amidst rising inflation.
* **Increased competition**: Zalando faces intensifying competition from both online and offline retailers.
* **Supply chain disruptions**: Ongoing supply chain issues continued to impact product availability and delivery times.
**Strategic Initiatives**
Despite the challenging market conditions, Zalando remains committed to its long-term growth strategy. The company is focusing on the following initiatives to improve its performance:
* **Expanding into new markets**: Zalando is entering new markets, such as Hungary, Romania, and Slovakia, to increase its customer reach.
* **Strengthening its private label offerings**: Zalando is developing its own private label brands to offer exclusive and affordable products.
* **Enhancing the customer experience**: Zalando is investing in improving its website, mobile app, and customer service.
**Outlook**
Zalando expects the challenging market conditions to continue in the second half of 2023. However, the company remains optimistic about its long-term prospects. Zalando CEO, Robert Gentz, stated:
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