19th August 2026 Klarnahas slashed its full-year revenue and sales volume forecasts as weaker consumer spending across Europe, particularly in Germany, weighs on the company. It blamed the downgrade partly on currency movements, which are expected to have an impact of around $600m, as well as a more cautious outlook for retail spending in Germany, its largest market by volume. Klarna said it was taking a “more measured view” of German volumes for the remainder of the year, amid particular weakness in discretionary retail categories. German retail sales increased by less than one per cent in real terms during the first half of 2026. The company expects the market to remain subdued during the second half rather than recovering as it had previously anticipated.