Zalando expects return to growth in second half
Online fashion retailer Zalando has said it expects to post improved profitability and a return to growth in the second half of the year after its number of active customers grew by 11% to over 49 million in its second quarter.
However, the company’s gross merchandise volume was flat in the quarter at €3.8 billion after trading was impacted by lower consumer confidence, inflationary pressures and some supply chain shortages.
Meanwhile revenue fell by 4% to €2.6 billion mainly due to the transition of the business to a platform model.
Zalando reported an adjusted EBIT of €77.4 million in the period resulting in a margin of 3%.
Robert Gentz, co-chief executive at Zalando, said: “We have demonstrated our agility as a team, showing that we can react quickly to adapt to the current environment while also making the experience of our customers even more inspiring and engaging. We continue to grow our customer base and are fully focused on our strategy and making selective investments across our business to ensure our long-term growth.”
