German online fashion retailer Zalando raises full year guidance

(Reuters) – German online fashion retailer Zalando SE increased its full year earnings guidance on Wednesday, as the coronavirus pandemic prompts more people to shop online.

The company said it expects to grow gross merchandise volume (GMV) by 20% to 25% and revenue by 15% to 20% in 2020, up from its guidance from May 6 when the company had expected GMV and revenue growth of 10% to 20%.

Europe’s biggest online-only fashion retailer said it expects adjusted earnings before interest and tax (EBIT) of 250-300 million euros for the full year.

The company said that based on preliminary figures for the second quarter, it has grown GMV by 32% to 34% to 2.67-2.71 billion euros and group revenues by 26% to 28% to 2.01-2.05 billion euros, adding it expects a second quarter adjusted EBIT in the range of 200-220 million euros.

The company’s financial results for the second quarter

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Buy now, pay whenever? Lockdown lift for online shopping loans

By Nikhil Nainan

(Reuters) – Browsing online during lockdown, Jessica Friend spotted a pair of Ray-Ban sunglasses she liked, but the price tag made the 30-year-old Ohio resident think twice.

What persuaded her to click ‘buy’, Friend said, was the short-term credit offered by Afterpay, which split the $260 payment into four interest-free instalments.

Afterpay is among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants a 4%-6% commission.

These buy-now-pay-later (BNPL) firms have benefited from a shift to online shopping during the coronavirus crisis in countries including the United States, where state aid has also boosted retail sales.

“I’m more inclined to use them because they make it easier to afford to get the things I want all at once … and when I want to splurge on something,” Friend said of the loans.

Some investors are

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Online fashion stocks in vogue as coronavirus speeds ecommerce

Gregory P. Daily

By Emma Thomasson

BERLIN (Reuters) – Shares in online fashion retailers Zalando and ASOS jumped on Thursday after the German company said it expects a big increase in second-quarter sales and operating profit as coronavirus lockdowns accelerate a shift to ecommerce.

The growth rate of online fashion looks set to triple this year to account for 23% of European sales in 2020, levels not expected before 2024 prior to the pandemic, analysts at Bernstein said, adding the market share could hit 37% by 2030.

“The sudden closure of all apparel retail stores across all major global markets has shaken up the channel mix in an unprecedented way this year,” said Bernstein’s Aneesha Sherman. “(It’s) five years’ worth of growth achieved in about six months.”

Zalando, Europe’s biggest online only fashion retailer, said late on Wednesday it expects to significantly beat market expectations for 16% second-quarter revenue growth and an adjusted

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