Zalando (OTCMKTS:ZLNDY) Shares Down 6.3% Following Weak Earnings

Key Points

• Zalando shares fell 6.3% to $14.09 after the company reported quarterly earnings of $0.04 per share, missing analysts’ $0.10 consensus estimate by $0.14.
• The company reported a thin 0.70% net margin and 3.46% return on equity, while trading volume was 66% below its average session level.
• Despite the earnings disappointment, DZ Bank upgraded Zalando to “strong buy,” and analysts’ overall consensus rating remains “Buy.”

Zalando (OTCMKTS:ZLNDY - Get Free Report)'s share price traded down 6.3% during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $14.09 and last traded at $14.09. Approximately 17,763 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 51,856 shares. The stock had previously closed at $15.04.

The company reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.14). Zalando had a net margin of 0.70% and a return on equity of 3.46%.

Analysts Set New Price Targets

Separately, DZ Bank upgraded shares of Zalando from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Zalando presently has an average rating of "Buy".

Zalando Trading Down 6.4%

The company has a quick ratio of 0.63, a current ratio of 1.06 and a debt-to-equity ratio of 0.19. The business's fifty day simple moving average is $13.41 and its two-hundred day simple moving average is $13.45. The company has a market cap of $6.88 billion, a price-to-earnings ratio of 64.00 and a beta of 1.46.

About Zalando

Zalando SE is a Germany-based online fashion and lifestyle retailer headquartered in Berlin. The company operates a digital platform that offers clothing, footwear, accessories, beauty products and related lifestyle merchandise from international brands, as well as its own private-label offerings.

Founded in 2008 by Robert Gentz and David Schneider, Zalando initially focused on online footwear before expanding into a broader fashion marketplace. Its platform connects customers with brands and retail partners, while the company also provides services such as fulfillment, logistics, marketing and technology solutions through its partner ecosystem.

Zalando serves customers across multiple European markets through localized websites and mobile applications.

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