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Zalando reports strong revenue and profit growth

Zalando reports strong revenue and profit growth

Zalando SE has said in a statement that gross merchandise volume (GMV) grew by 25.1 percent to 4.72 billion euros and revenue grew by 19.6 percent to 3.56 billion euros in the first half of 2020. In the same period, Zalando achieved an adjusted EBIT of 113.3 million euros at a margin of 3.2 percent compared to 108.1 million euros; 3.6 percent in the first half of 2019. The company also expanded its customer base by 20.4 percent and now serves over 34 million active customers across Europe. For the full year, Zalando expects GMV growth of 20-25 percent and revenue growth of 15-20 percent, an adjusted EBIT of 250-300 million euros and investments between 230-280 million euros.

Commenting on the trading update, Zalando Chief Financial Officer David Schröder said: “In the past months we have proven the strength and agility of Zalando in many ways, no matter how challenging the environment. Many of our partners have intensified their business on our platform in the last months, and we have managed to successfully grow together.”

Review of Zalando’s performance

The company added that following the strong growth in the first six months and especially in the second quarter, with a GMV growth of 33 percent, Zalando will continue to take decisive and transformative steps to enable future growth. The company recently raised one billion euro in additional liquidity through the placement of convertible bonds. Zalando plans to double down on its platform transition in the second half of the year. Key initiatives include the acceleration of the partner program, as well as the Connected Retail program, which allows brick-and-mortar retailers to scale their digital business.

In the second quarter, the company saw around 180 new brand partners sign to the partner program. As a result, partner program GMV grew over 100 percent compared to the same period last year, while the volume of items shipped through Zalando Fulfillment Solutions (ZFS) grew 180 percent.