Co-CEO Robert Gentz Discusses Strategy with Financial Times

  • Zalando to cut back on marketing spend instead of job cuts
  • Robert Gentz, co-founder and co-CEO of Zalando, speaks to Financial Times
  • European fashion retailer’s competitors have already made significant job cuts this year
  • Zalando’s Q2 revenue fell 4% to £2.19bn compared to £2.28bn in Q2 2021
  • H2 guidance lowered, forecasting sales increase between 0-3% and adjusted EBIT of £150.7m to £217.6m
  • Zalando aims to maintain employment at over 17,000 employees by year’s end
  • Gentz admits to being more cautious in hiring but remains optimistic about the fashion industry

Zalando’s co-founder and co-chief executive, Robert Gentz, has told the Financial Times that the company plans to reduce its marketing expenditure rather than resorting to mass layoffs. The European fashion retailer aims to maintain its workforce at over 17,000 employees despite a 4% drop in Q2 revenue from £2.19bn (April-June 2022) compared to £2.28bn (Q2 2021). Competitors like Amazon and Shopify have already made significant job cuts due to the slowest online shopping growth in two years. Zalando remains optimistic about the fashion industry, despite lowering its H2 guidance for sales increase between 0-3% and an adjusted EBIT of £150.7m to £217.6m.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Zalando’s financial performance and its strategy to avoid mass job cuts by reducing marketing spend instead of layoffs. It includes relevant details from the Financial Times report and quotes from Robert Gentz, the co-founder and co-CEO of Zalando.
Noise Level: 3
Noise Justification: The article provides relevant information about Zalando’s financial performance and its strategy to avoid mass job cuts by reducing marketing spend instead of layoffs. It also includes quotes from Robert Gentz, the co-founder and co-CEO of the company. However, it could benefit from more in-depth analysis or context on the broader trends affecting the fashion industry and online retail market.
Financial Relevance: Yes
Financial Markets Impacted: Zalando’s stock price and competitors such as Amazon, Klarna, and Shopify
Financial Rating Justification: The article discusses Zalando’s financial performance and its plans to avoid mass job cuts by cutting marketing spend instead. This affects the company’s financial situation and may impact the stock prices of Zalando and its competitors in the online shopping industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk