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Zalando has seen revenues increase to €2.2bn (£1.8bn) for the first quarter of 2024.
Adjusted earnings before interest and tax (adjusted EBIT) rose to €28.3m (£24.2m), in line with market expectations and representing a margin of 1.3%, compared to – €0.7m (£0.6m) in the prior-year period.
Gross merchandise volume (GMV) rose 1.3% to €3.3bn (£2.8bn) in the first quarter compared with a year ago.
Zalando said that the substantial improvement in profitability was driven by lower fulfilment costs and successful inventory management, leading to an improved gross margin.
In the first quarter, the company further elevated its assortment by launching the premium sports brand ‘On’ in 22 markets. To further improve the quality of its digital experience, Zalando also rolled out its size-advice-with-body-measurement tool to customers in Spain, France and Italy, bringing the total to six markets.
As a result of the trading, the retailer has confirmed its full-year guidance for 2024 and expects both GMV and revenue to grow 0% to 5% this year compared to 2023. Adjusted EBIT is expected to be between €380m (£326m) and €450m (£386m).
Dr. Sandra Dembeck, Zalando CFO, said: “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.
“B2C customers are showing increased interest in our quality assortment, digital tools, propositions and inspiring content. B2B customers are signing up for our unique offering. Both of our growth vectors are strong and contributing to results, demonstrating the strength of our plans.”
