Zalando posts strong third quarter growth
Online fashion retailer Zalando saw its revenue climb by 21.6% to €1.8 billion in its third quarter.
Gross merchandise volume was also up and rose by 29.9% to €2.5 billion.
The retailer said the increases were driven a consumer shift towards online shopping during the coronavirus pandemic and a strong performance by its brand partner programme.
During the three month period, Zalando achieved an adjusted EBIT of €118.2 million or a margin of 6.4%, after the retailer significantly improved its cost of sales and made efficiency gains in fulfilment.
David Schröder, Zalando chief financial officer, said: “As the second coronavirus wave is starting more forcefully than anticipated, we are much better prepared than earlier in the year. Our Starting Point for Fashion strategy continues to enable us to turn the accelerated consumer demand shift towards digital offerings into business opportunities for Zalando and its partners. We will continue to invest to drive strong growth beyond 2020 following our key strategic priorities: growing our active customer base, deepening customer relationships and driving our platform transition.”
Zalando raised its outlook for the 2020 financial year on 8 October and now expects gross merchandise volume to grow by between 25% and 27% and revenues by 20% and 22%. It is also expecting to achieve an adjusted EBIT of between €375 million and €425 million.
