Zalando has announced an increase in its full-year forecast, driven by strong consumer demand and impressive third-quarter performance.
- The online retail giant’s adjusted EBIT saw a staggering increase from £19 million to £78 million.
- Customer numbers surpassed 50 million, as sales climbed by 5% to £2.01 billion.
- Gross merchandise volume also grew, recording a 7.8% increase, reaching £2.93 billion.
- The company’s evolving ecosystem strategy has been key to capitalizing on industry-wide demand.
Zalando, a predominant player in the online fashion retail sector, has revised its financial outlook upward for the fiscal year. This change is attributed to robust consumer demand, which significantly boosted its sales and profitability in the third quarter. The company’s adjusted earnings before interest and taxes (EBIT) soared from £19 million to an impressive £78 million (€93 million), reflecting a strong market presence.
In line with this financial growth, Zalando’s customer base expanded remarkably. Over 50 million active customers were recorded, fuelled by a 5% increase in sales amounting to £2.01 billion (€2.4 billion). Furthermore, the company’s gross merchandise volume experienced a noteworthy rise of 7.8%, reaching £2.93 billion (€3.5 billion), signaling strong market penetration and consumer engagement.
The German-based fashion powerhouse credits its success to its comprehensive ecosystem strategy, which emphasizes quality, lifestyle expansion, and bolstered B2B capabilities. This strategic approach has effectively harnessed consumer demand, particularly during what is described as an ‘industry-wide strong start to the fall/winter season.’
Recently, Zalando has adjusted its full-year EBIT expectations to between £367 million and £402 million, surpassing the previously projected range of £318 million to £377 million. Robert Gentz, co-CEO of Zalando, highlighted the surge in consumer demand across the industry during the third quarter, noting the advantageous start of the fall/winter season compared to the previous year’s slower beginning.
Looking toward the future, Zalando is doubling down on strategic investments. These investments aim to drive customer loyalty, enhance the fashion discovery experience, and strengthen the company’s European logistics network. This approach aligns with Zalando’s updated ecosystem strategy, underscoring its intent to seize growth opportunities in the fashion and lifestyle e-commerce market.
Zalando’s strategic maneuvering and consumer-focused initiatives have set a strong foundation for continued growth and profitability.
