Zalando Q1 Profits Hard Hit by Late Season Start, InvestmentsPosting 22 percent sales growth in the quarter, the online giant reconfirmed its full-year forecast.

[Collection]BERLIN – Zalando generated strong sales growth in the first quarter of 2018, although earnings suffered from continued investments – and uncooperative weather. Zalando booked a 15 million euros net loss compared to a net profit of 5.1 million euros in the corresponding period last year. Adjusted earnings before interest and taxes (before expenses for equity-settled, share-based payments and effects from business transactions that do not recur regularly) plunged 98 percent to 400,000 euros, compared to 20.3 million euros last year. Nonetheless, co-chief executive officer Rubin Ritter put a positive spin on operating profits, stressing the company was still operating on a break-even basis. In a conference call Tuesday morning, he said the spring-summer season got off to a late start due to unseasonably cold weather throughout Europe in March. This lead to a higher level of markdowns “to sell off old merchandise as well as kick-start the new season,” he said. Ritter added that the company continues to invest heavily in logistics, ramping up new warehouses in its current network of 15 European markets, and spending to improve the customer experience. “These were the major reasons” for the profit slump, he said, emphasizing that “investments into future growth” will continue unabated. Sales for the quarter

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