Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

StockBeat: Zalando Jumps as Locked-Down Consumers Get Into Exercise

Stock MarketsApr 16, 2020 05:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Geoffrey Smith -  Germany’s decision to allow certain stores to reopen from next week is the biggest sign yet from Europe’s biggest economy that it is on the road to recovery, but it's storeless fashion retailer Zalando that is the country's biggest gainer on Thursday.

Zalando (DE:ZALG) shares rose 5.5% to their highest since February after the company said that, actually, the first quarter wasn’t going to be as bad as it had warned.

Analyst consensus had coalesced around a loss of 10 million euros before earnings and taxes for the quarter after the company’s vague profit warning in March, but it said after the close on Wednesday that it now expects a profit, albeit of less than 10 million euros. Gross merchandise value and revenue won’t be too far away from analyst expectations for growth of 23% and 15% respectively.

The surprise seems due to customers paying more attention to keeping fit during lockdown. Zalando said its customers had doubled their purchases of sportswear from a year earlier, specifically in the area of running, yoga and fitness wear.  

Online retailers have, inevitably, done better than their brick and mortar rivals in the age of Covid-19 lockdowns. Amazon (NASDAQ:AMZN) has marched to all-time highs, while traditional chains, from Nordstrom (NYSE:JWN) to the U.K.’s Debenhams, have languished. With today’s gains, Zalando is down only 5.7% for the year, while U.K.-based (LON:BOOH), another online only name, is down only 7.7%.  By contrast, Next (LON:NXT) and H&M (ST:HMb) are down over 30% while Zara owner Inditex (MC:ITX) is down nearly 20%.

The bifurcation has sharpened this week as Zalando, Boohoo and Asos (LON:ASOS) have all risen by between 6% and 10%. Assuming that customers haven’t spent all their reduced pay checks on yoga bottoms, the first reopenings may arrive just in time to save this year’s spring collections from total ruin.

Whether they are enough to encourage purchases of a new Audi is another matter. But, with all of Germany's auto dealerships also allowed to reopen from next week, at least there's hope. 

Germany’s big auto names were at the top of the DAX on Thursday morning, with Volkswagen (DE:VOWG_p) preferred stock up 3.4%, Daimler (DE:DAIGn) stock up 2.4% and BMW (MI:BMW) stock up 2.3%. Infineon (DE:IFXGn), which depends in large measure on selling chips to those names, is the biggest gainer, up 3.6%. The DAX pared early gains to be up 0.9% while the STOXX 600 was up 0.7%.

StockBeat: Zalando Jumps as Locked-Down Consumers Get Into Exercise

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email