Zalando Says Second-Quarter Earnings May Have Declined on Costs

FRANKFURT, Germany — Zalando SE indicated that second-quarter earnings may have declined as the German online fashion retailer had higher costs.

Zalando estimates second-quarter earnings before interest and taxes and adjusted for stock-based compensation will be 22 million euros ($24 million) to 37 million euros, the company said in a statement Tuesday. Analysts surveyed by Bloomberg had expected profit of 34.3 million euros, and the year-earlier figure was 35 million euros. Revenue was in a range of 727 million euros to 738 million euros, beating analysts’ estimates for 688 million euros.

“Ebit margin was impacted by a temporary increase in payment cost,” the company said. “Revenue growth accelerated significantly above expectations.”

Zalando combines catalog-style layouts and online recommendations to sell its sneakers, sweaters and dresses. In May, the Berlin-based retailer raised its revenue forecast for the year.

The shares rose 0.4 percent Monday to 33.43 euros in Frankfurt, pushing their gain this year to 31 percent. They dipped earlier this month when Holtzbrinck Ventures GmbH and AI European Holdings said they were selling a combined 3.36 percent stake.

Zalando is scheduled to release full second-quarter results on Aug. 13.

By Aaron Ricadela, Janice Kew; editor: Matthew Boyle, Thomas Mulier.