Zalando has said it “successfully expanded its customer reach” as it saw revenues and profits jump for the first quarter of 2019.
It revealed that revenues increased by 15.2% to £1.2bn and its adjusted EBITDA increase from £0.3m to £5.5m.
Zalando attributed the rise to its active customers increasing by 14.1% to 27.2 million and site visits by 29.5% to 924 million. It added its customers ordered “more frequently than before”. Zalando also continued to capture market share in the first quarter of 2019, growing Gross Merchandise Volume (GMV) by 23.1% to £1.5bn.
The online retailer said GMV growth “notably outpaced” revenue growth due to the strong development of its ‘Partner Program’ and revenue recognition effects.
The strong growth of its Partner Program was driven by brands “intensifying their usage” as well as by new partners joining the program, such as Calzedonia, Intimissimi or Margarete Steiff. In the first quarter, about 30% of all Partner Program orders were fulfilled through its Zalando Fulfillment Solutions (ZFS).
With a newly acquired e-money licence, the retailer said that it was set to further strengthen and expand Zalando Payments Solutions (ZPS) by improving payment transactions on the Zalando platform.
The company also confirmed its full-year guidance of GMV growth between 20% and 25%, revenue growth at the low end of this range, an adjusted EBIT between £150m and £193m and capital expenditure of around £257m.
Zalando co-CEO, Rubin Ritter, said: “Our clear customer focus has paid off in the first quarter, as we made further headway to build the starting point for fashion in Europe.”
CFO, David Schröder, added: “We are happy with our financial results in the first quarter, which show a strong focus on growth and are in line with our annual guidance. We will continue to invest in areas of our business that have high added value for our customers.”