Zalando falls as gross margin, net loss offset Q3 sales beat

Zalando SE

Tue 08:38

** Shares in German online fashion retailer Zalando ZALG.DE fall around 4% after Q3 results, as weaker gross margin and net loss overshadow slightly better-than-expected sales 
** JPMorgan says gross margin fell 90 bps y/y, partly due to investments to support growth, raising questions over the sustainability of mid-single-digit GMV growth into next year
** Jefferies says gross margin miss likely reflects Zalando chasing faster GMV growth through targeted price investments, particularly sneaker clearance
** Raiffeisen Research expects Q3 net loss of €18.0 million  ($20.14 million) to drive a negative share reaction despite solid operating performance
** Excluding the session's losses, stock up around 1% YTD


($1 = 0.8937 euros)

 (Reporting by Basile Day)
 ((Basile.Day@thomsonreuters.com))