No growth in sight, we cut top-line forecasts for 23/24e We have updated our forecasts for the seven European online retailers under our coverage, following the Q1 reporting season. At the start of the year, growth for online pure-plays was scarce. Current trading comments suggest this hadn''t changed in April/May. The outlook message across the sub-sector was consistent as almost all the retailers push top-line growth and profit expectations out to the second half of 23/24e. This report aligns our forecasts with this messaging, provides a summary of the trends seen over Q1 and compares full-year guidance. In a difficult retail sub-sector we reconfirm our preference for Zalando (+) as our top-pick within the online sub-sector. The expectation for a return of growth is increasingly later in the second half of 2023 UK-based ASOS, Boohoo and THG saw the steepest Q1 revenue declines, as multichannel MandS and Next took share. About You, Allegro and Zalando held up better in Europe. Over the quarter excess inventories intensified promotional activity and pressured gross margins. The promises for channel growth have become even more second-half weighted than previously thought. Share prices have reflected this, as much of the strong YTD performance has reversed over the last month. Margin outlook implies a slower build in profits over the medium-term Margins have generally been solid; however, the companies remain cautious. Near-term profit guides did not reveal any major surprises, but commentary on the medium-term aspirations was restrained. Updating our forecasts and target prices, leaving our recommendation structure unchanged Zalando (+) has the best quality fundamentals in the online sub-sector given it is profitable and has a strong balance sheet. European consumers also increasingly appreciate its leading platform as our Survey of Shoppers shows, which should support a return to growth. We think Boohoo (+) is a more tangible turn-around story...