By Scott Kanowsky
Investing.com -- Shares in Zalando (ETR:ZALG) slumped to an eight-year low on Friday, after the German online fashion retailer revised down its full-year results.
Zalando said it now expects annual adjusted operating profit to come in between €180 million and €260 million on revenue growth of 0% - 3%.
In a statement on Thursday, the company added that earnings in the second quarter will also come in "significantly" below analyst estimates. It cited a deterioration in macroeconomic conditions that have hit consumer confidence in Europe.
The announcement marks Zalando's second profit warning in two months.
"The company’s previous outlook, from early May, pointed to the lower end of full year guidance based on anticipated challenges but also early signs of a potential recovery. Management now expects macroeconomic challenges to be longer lasting and more intense than previously anticipated," Zalando said.
It added that an effort to cut costs and cater offerings to consumer demand is expected to help boost growth in the second half of the year.
However, Zalando said it does not assume consumer confidence to rebound in the short-term.