Zalando revenue grows 34% in second quarter, even as European lockdown eases – WWD

Zalando has seen revenue rise 34% to € 2.73 billion in the past three months, even as the retail foreclosure in Europe was eased.

The e-commerce giant has seen massive growth during the COVID-19 pandemic and the lockdown that followed as Europeans flocked online to buy clothes. Even compared to the second quarter of 2019, the last “normal” year for business before the health crisis hit, Zalando increased revenue by around 60%.

In the first six months of this year, Zalando’s revenue totaled $ 4.97 billion, an increase of 39.7 percent from the previous year.

“The growing engagement of customers and brands underscores the long-term relevance of the Zalando platform and is strong evidence of our successful strategy,” Company CFO David Schröder said in a statement.

Zalando prefers to measure his success via the gross value of the goods, or GMV. This represents the amount of inventory moved by Zalando, as opposed to revenue from services such as logistics and marketing. In the second quarter, Zalando transferred € 3.79 billion in revenue, a 40% increase over GMV in the same period last year. This means that in the first half of this year, Zalando sold € 6.9 billion worth of clothing, makeup and other fashion items.

That number is expected to continue to rise as more retailers, including brick-and-mortar stores affected by the closures, partner with Zalando. The platform currently has 4,700 retailers enrolled in its partner program and also announced that from October it will collaborate with online beauty retailer Sephora in Germany.

The other key metrics for Zalando are site visits, active customers and orders, all of which have increased compared to the same period last year. The company had 44.5 million active customers, 1.69 billion site visits and 65.6 million orders in the second quarter. Almost all of the buyers – 87.9% – came to the Zalando site via mobile devices.

Zalando also continued its expansion in other countries of the continent, starting to offer its services in Lithuania, Slovakia and Slovenia in June and then, from the end of July, in Croatia, Estonia and Latvia.

In the last three months, the GMV inside German-speaking countries including Germany, Austria and Switzerland amounted to 1.16 billion euros while in the rest of Europe, the GMV amounted to 1.33 billion euros.

Zalando’s profit before interest and taxes in the second quarter was 184.4 million euros, or 6.7% of revenues compared to 10.4% in the previous year quarter. The company cited more investment “in customer acquisition and brand marketing” after scaling back those efforts last year, due to uncertainties when the pandemic first struck.

Zalando also confirmed its forecast for the rest of the year with revenue growth of 26-31% for the full year, GMV growth of 31-36% and adjusted EBIT. between 400 and 475 million euros.

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