What: The German online fashion retailer’s first-quarter sales fell by 1.5 percent , to EUR 2.2 billion (USD 2.33 billion), after posting a 46.8 percent increase in the same quarter last year thanks to the coronavirus pandemic.

Why it is important: As pandemic restrictions have eased, people are returning to in-store shopping, which is why online retailers like Zalanso are only able to increase their number of customers slightly.

Zalando now sees 2022 sales growth coming in at the lower end of the forecast range. For the three months from January to March, the company reported an adjusted operating loss of almost EUR 52 million, compared with a year-earlier profit of EUR 93 million.

“The main issue is that people just aren’t into buying fashion,” said co-chief executive officer Robert Gentz with a view to high inflation and the war in Ukraine.

Zalando has posted a decline in sales for the first time since being founded