Street View-Zalando: Analysts cheer 'ambitious' targets
17/03/2021 15:54
** German online fashion retailer Zalando ZALG.DE has said
it expects its 2021 revenue to come significantly above market
projections, adding it aims to capture more than 10% of the 450
billion euro European fashion market in the longer term
urn:newsml:reuters.com:*:nL1N2LD1YD urn:newsml:reuters.com:*:nL8N2LE1IK
** It targets gross merchandise volume (GMV) - sales on its
site by itself or by partners - to exceed 30 billion euros by
2025
** Zalando's stock is down 2.9% as of 1554 GMT, after
closing 5% higher on Tuesday
"ACHIEVABLE BUT AMBITIOUS"
** According to analysts Zalando delivered solid 2021 and
long-term outlook on top of strong Q4 and FY results
** Credit Suisse ("neutral") points to "very bullish" sales
and GMV guidance, with Zalando's aim to capture over 10% of the
450 billion euro European fashion market looking achievable even
if ambitious
** Barclays adds that it came away from Zalando's capital
markets day with "higher outer year forecasts and more
confidence on their delivery"
** Analysts also note that the company managed well worries
over growth post COVID-19 pandemic, supported by accelerated
customer acquisition growth and relationships with brands and
retailers
** JP Morgan ("neutral") sees near-term sales growth to be
supported by a stronger clothing market backdrop as life
normalizes
** However, they flag the stock's premium valuation against
peers, noting uncertainty around Kinnevik's KINVb.ST
distribution of Zalando stake in May-June urn:newsml:reuters.com:*:nL1N2KN0BO and
consumer behaviour in Q2 and Q3
** Zalando is in a "stronger than ever position" as
customers increasingly turn to digital shopping, Baader Helvea
("buy") adds and Liberum expects Zalando to continue leading the
online European fashion market
((Linda.pasquini@thomsonreuters.com))