FRANKFURT (dpa-AFX Broker) - Investors are very positive about the latest developments at Zalando on Tuesday. The fact that the online fashion retailer was somewhat more profitable than expected in the first quarter thanks to its cost-cutting measures is providing a tailwind. This overshadowed the poor sales performance in light of the weak economy in Germany and poor consumer sentiment.

Zalando's share price rose by 5.6 percent in the morning. The share price thus tested the 21-day line, which, if crossed, would set a positive short-term trend signal. This took place in an otherwise friendly market environment, as the DAX rose by half a percent at the same time, taking a further step towards a record high. Behind Infineon, Zalando was the second-biggest winner in the leading German index.

In general, initial comments were that the start to the year was mixed. However, Volker Bosse from Baader Bank praised the adjusted operating result (EBIT), which had turned out better than feared and showed a positive trend compared to the previous year. The expert emphasized that Zalando had focused on profitable growth areas and demonstrated cost discipline. He made positive mention of lower fulfillment costs, which reflect the costs of packaging and shipping, for example. Successful warehouse management also contributed to an improved gross margin.

According to DZ Bank expert Thomas Maul, the positive news therefore outweighed the negative in the first quarter. In addition to the increase in the gross margin, he also referred to the gross merchandise volume, which is back on a growth path. Driven by a larger customer basket, Zalando's volume increase of 1.3 percent slightly exceeded market expectations - despite a decline in the number of active customers. On average, investors had only expected an increase in volume of half a percent.

Thanks to the price gains on Tuesday, Zalando shares are gradually becoming an investor favorite among the 40 DAX stocks in 2024. The share price has already risen by more than a fifth this year. However, this should not obscure the fact that the share price reached a record low in January. While prices of over 100 euros were still being paid in 2021 during the pandemic, investors were able to purchase shares for just under 16 euros at times at the start of the year./tih/ag/stk