German Stocks Slide Slightly Amid Inflation Data and Zalando Surge

German stocks are experiencing slight declines as investors assess inflation data. Meanwhile, Zalando's shares surge nearly 16% after exceeding EBIT guidance for 2024, reflecting strong customer growth through effective marketing.

Date: 16-01-2025

AI Rating: 7

The report indicates a cautious sentiment in the German stock market, with the DAX down by 0.11%. The mention of consumer price inflation is significant, highlighting a rise to 2.6% in December from 2.2% in November, which may affect investor sentiment as it reflects economic pressures. Additionally, the rise in EU-harmonized inflation to 2.8% could further influence market stability.

Zalando’s Performance

Notably, Zalando has shown exceptional performance with its stock soaring nearly 16%. The company surpassed its adjusted EBIT guidance for the financial year 2024, expecting adjusted EBIT to reach around 510 million euros, exceeding previous guidance of 440-480 million euros. This is indicative of strong revenue growth and better than anticipated profit margins for the company.

Preliminary figures indicate that Zalando's gross merchandise volume rose by 4.5% to 15.3 billion euros, with revenue growth of 3.9% to 10.5 billion euros. This demonstrates robust operational performance and can positively influence stock price expectations moving forward.

Stocks: ZAL DAX