With gross merchandise volume (GMV) rising by 1.3 per cent to € 3.3 billion and revenues of € 2.2 billion compared to € 2.3 billion in the same time last year, Zalando demonstrated growth and increased profitability in the first quarter.
According to Zalando, adjusted EBIT increased to € 28.3 million, in line with market forecasts and signifying a 1.3 per cent margin. This is in contrast to the prior-year period’s negative € 0.7 million, which was primarily caused by lower fulfilment costs and better inventory management, which resulted in an improved gross margin.
Zalando has confirmed its full-year expectations, predicting revenue and GMV growth of 0 to 5 per cent and adjusted EBIT of € 380 to € 450 million, respectively.
“As we are executing our ecosystem strategy, we are excited by the positive response from customers and partners in the first quarter. We are returning to growth,” said Dr. Sandra Dembeck, Zalando CFO in a statement.
The premium sports brand “On” was introduced by the company in 22 markets during the first quarter. To enhance the quality of its online experience, Zalando extended its size advice with body-measurement tool to clients in Spain, France, and Italy, increasing the total to six territories. Following a conversation with parents of children with disabilities to ascertain their needs, Zalando also launched 20 adapted kid’s shoe styles as part of their inclusive assortment.
The company collaborated with British-Japanese artist and actor Rina Sawayama as a new ambassador for its designer offering as part of the updated designer experience on the website and app. Also, Zalando and the Italian fashion house Aspesi collaborated to create the unique “Cinema Club” capsule collection. Zalando’s growth during the quarter was primarily driven by its offerings in the areas of sports, kids & family, beauty, and “Lounge by Zalando.”
The first quarter’s GMV at B2C increased by 1.3 per cent to € 3.3 billion, helped by a timely start to the spring/summer season. Adjusted EBIT increased to € 23 million during the quarter, or 1.1 per cent margin.
In the first quarter, Zeos multi-channel fulfilment added five additional partners, increasing the total number of B2B merchants to 27. The adjusted EBIT at the B2B growth vector increased to € 5 million, and the adjusted EBIT margin improved to 2.5 per cent. Revenue at the vector increased by 13 per cent to € 215 million.
