coronavirus

Online fashion stocks in vogue as coronavirus speeds ecommerce

By Emma Thomasson

BERLIN (Reuters) – Shares in online fashion retailers Zalando and ASOS jumped on Thursday after the German company said it expects a big increase in second-quarter sales and operating profit as coronavirus lockdowns accelerate a shift to ecommerce.

The growth rate of online fashion looks set to triple this year to account for 23% of European sales in 2020, levels not expected before 2024 prior to the pandemic, analysts at Bernstein said, adding the market share could hit 37% by 2030.

“The sudden closure of all apparel retail stores across all major global markets has shaken up the channel mix in an unprecedented way this year,” said Bernstein’s Aneesha Sherman. “(It’s) five years’ worth of growth achieved in about six months.”

Zalando, Europe’s biggest online only fashion retailer, said late on Wednesday it expects to significantly beat market expectations for 16% second-quarter revenue growth and an adjusted

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