Zalando Lowers Guidance Despite Q2 ImprovementNoting ongoing investments and adverse seasonal weather conditions, Zalando specifies full guidance in the lower half of its target corridors.

[Collection]BERLIN — Zalando lowered its sales and profit outlook for the full year after second-quarter sales came in below expectations, despite a record number of active customers and orders during the period. Group sales rose 20.9 percent to 1.33 billion euros, while adjusted earnings before interest and taxes (EBIT) gained 14.9 percent to reach 94 million euros. The Berlin-based e-tailer said second quarter net income rose 4.2 percent to 51.8 million euros. The second quarter’s performance came on the heels of losses in the first three months of the year, which, as previously reported, were largely driven by a late season start and ongoing investments in logistics, which will continue for the year. While remaining within the bounds of its full-year guidance, Zalando is now expecting to hit the lower end of its target corridors. These call for revenue growth of 20 percent to 25 percent, and adjusted EBIT of 220 million euros to 270 million euros. Zalando shares were down 7.3 percent in mid-morning trading on the MDAX index of German mid-cap stocks. For the first six months of the year, group revenues totaled 2.53 billion euros, a gain of 21.4 percent, but net income fell 30.2 percent to 36.7 million euros and adjusted

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