Zalando Sales Miss Estimates as Warm Winter Deters Shoppers

BERLIN, Germany — German online apparel retailer Zalando SE reported fourth-quarter sales that missed estimates as a mild Christmas season in Europe damped demand for cold-weather togs.

Sales increased as much as 31 percent and were in a range of 865 million euros to 872 million euros, the Berlin-based company said in a statement Tuesday. That compared with the average 876 million-euro estimate. Earnings were in a range that met estimates.

Zalando, spun out of the Samwer Brothers’ Rocket Internet startup incubator, has been reckoning with a warm Christmas season in Europe that’s also hit retailers including Hennes & Mauritz AB. The shares have tumbled this month as analysts anticipated a tough holiday sales period.

The fourth-quarter performance was in line with prior guidance, Zalando said, referring to “challenging market conditions.”

Earnings before interest and tax were in a range of 61 million euros to 78 million euros. Analysts expected 65.8 million euros, according to the average estimate of analysts compiled by Bloomberg.

By Aaron Ricadela; editors: Matthew Boyle, Paul Jarvis and Angela Cullen.