Fashion firm hit by profit warning

SHARES in Zalando plunged more than 13pc as it issued its second profit warning in just over a month.

Europe’s biggest online-only fashion retailer, which sells brands including Calvin Klein, Levi’s and Ted Baker, blamed the long heatwave for taking its toll on sales, meaning fewer more expensive coats, jumpers and scarves had been sold in recent weeks.

The company expects fullyear profits to come in at between £133m and £167m (€150m and €190m), compared with £195m to £240m.

Sales growth expectations have also been slashed.

The retailer – which is listed on the Frankfurt Stock Exchange and axed 250 marketing and communications jobs earlier this year to replace them with robots – already cut its profits and revenue guidance last month.

Rubin Ritter, joint chief executive, said: ‘We don’t know when the season will start and when autumn-winter will actually kick in. This is a problem for the entire industry.’

Ritter added that fashion sales in Germany, where Zalando is based, fell 17pc last week compared with a year earlier. However, he said Zalando still expects to double sales by 2020.

Shares were down 13.1pc, or 5.48p, to 36.44p.