Zalando is likely to face a takeover bid from big eCommerce players like Amazon and Alibaba as its share price continues to dwindle.
Analysts at German investment bank Baader Helvea say the successful bidder can potentially become Europe’s largest online fashion house at a bargain.
In spite of reporting a £34 million loss and issuing two profit warnings in the previous quarter, which sent its share price plummeting, Zalando remains a valuable investment for investors, according to Volker Bosse, co-head of Baader Helvea Equity Research.
Zalando As Europe’s Largest Fashion Retailer
He said that the retailer boasts a data of more than 25 million customers and 2.5 billion website visits per year, making it Europe’s leading fashion retailer.
If and when a potential takeover bid does happen, Bosse speculates that Zalando’s investors are prepared to sell their shares.
“We see the potential that these investors could sell if the offered price is right.” – Volker Bosse, Co-Head of Equity Research, Baader Helvea
Zalando, which reported a revenue growth of 12% in its Q3 2018 financial report, is surely an attractive target for Amazon who intends to expand its private label brands into Europe.
On the other hand, Alibaba has partnered with top European brands and been selling them on its marketplace, hence acquiring Zalando would only further its position in the race to world domination.
So, who are you rooting for? Who do you think is the most likely buyer for Zalando? Let us know in the comments below or over in our Facebook Group.