**Zalando Confronts Q2 Revenue Decline Amidst Economic Headwinds**.
Zalando, the European e-commerce giant, has reported a lackluster performance in the second quarter of 2023, reflecting the broader economic challenges impacting the retail sector..
**Financial Snapshot**.
* **Revenue:** €2.6 billion, marking a 3.7% decrease year-over-year.
* **Gross Merchandise Value (GMV):** €3.4 billion, representing a 2.1% decline compared to Q2 2022.
* **Active Customers:** 51.3 million, a modest 2.2% increase.
* **Net Income:** €19 million, down significantly from €113 million in Q2 2022.
**Market Environment and Challenges**.
Zalando’s second-quarter performance was influenced by a confluence of factors, including:.
* **Inflation and Cost-of-Living Crisis:** Rising inflation has eroded consumer purchasing power, leading to reduced discretionary spending on non-essential items..
* **War in Ukraine:** The ongoing conflict has disrupted supply chains and increased transportation costs, impacting the availability and affordability of goods..
* **E-commerce Maturation:** The e-commerce landscape has become increasingly saturated, with heightened competition and a shift towards in-store shopping..
**Management Perspective**.
Zalando’s co-CEO Robert Gentz acknowledged the challenging market conditions, stating, .
