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Zalando has revealed that its revenues for the period dipped 1.5% YOY to €2.2bn (£1.8bn) as it transitioned to a platform model, despite seeing its active customers rise 5% to 49 million.
It also revealed that Gross Merchandise Volume (GMV) increased 1% to €3.2bn (£2.7bn) in the first quarter, which it added was compared with an “extraordinarily” strong growth in the first quarter of 2021.
Zalando also reported an adjusted EBIT of €-51.8m (£43.6m) corresponding to a margin of -2.4%, mainly due to reduced gross margin as a result of more promotional activities to attract customers and increased fulfillment costs.
Looking ahead, Zalando confirmed its full-year 2022 guidance at the lower end of GMV growth of 16-23% and lower end of revenue growth of 12-19%. Zalando also added it expects to achieve an adjusted EBIT at the lower end of €430-510m (£362m-£430m) and capital expenditure between €400m-€500m (£337m-£421m).
Robert Gentz, Zalando co-CEO, said: “Our business fundamentals are strong, and we are taking steps to improve our results.
“We are managing Zalando for the long term and have always used our business agility and adaptability to successfully respond to short-term challenges and consumer demand to emerge better and stronger. We remain confident that we will achieve our ambition to reach more than 30 billion euros GMV by 2025.”
