ZALANDO (OP, TP EUR47.50): Following weaker than expected margins in 2Q we are cutting current year EPS forecasts by c10%, however we don't see this as being significant to the investment case, which is largely predicated on long-term growth. The key announcement from 2Q was that Zalando will be building two more RDC’s giving it >€10bn of capacity by 2020, compared with LTM sales of €4bn and GMV of €5bn. In the ongoing battle for customers, which is being played out through the delivery proposition, this scale and proximity to customers, gives Zalando a huge advantage vs peers, and gives brands a compelling alternative to the Amazon platform in EU.
FULL NOTE
FULL NOTE