Online retailer Zalando has raised its profit outlook for the second half of the year after it recorded its “strongest ever” Q2 for active customer growth.
The company revealed its number of active customers “grew significantly” by 3.7 million (15.2%) year-over-year to 28.3 million across its 17 European markets. In the same period, site visits also went up 34.3% to 986.4 million, 84% of which came through mobile devices, resulting in a “record number of orders” (36.1m).
As a result, during the quarter it recorded a 20.1% increase in group revenues to €1.59bn (£1.45bn) up from €1.33bn (£1.21bn) the previous year. It also saw a 6.4% increase in adjusted profits to €101.7m (£92.68m). Gross Merchandise Volume (GMV) also grew by 23.7% to €2bn (£1.8bn).
Zalando also announced it now expects its profitability outlook to reach the upper half of the adjusted EBIT range of €175m (£159m) to €225m (£205m).
Zalando CFO, David Schröder, said: “More customers than ever before have chosen Zalando as their starting point for fashion. This proves that our continuous efforts to deliver a best in class fashion experience pay off.
“Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy.”
The news comes after Zalando announced it is to build a new £180m fulfillment center in an existing business park near Rotterdam to help cater for its western European customers.
The expansion of its logistics network forms part of Zalando’s 2023/24 growth target and aims to expand its customer proposition for customers in France, Spain and the UK.