Zalando sales rise 3.4% in Q2 amid sports division boost
GMV rose by 2.8% to €3.8bn (£3.26bn) and adjusted EBIT rose to €171.6m (£147m) in the second quarter, up from €144.8m (£124m) the prior year
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Zalando has welcomed a strong second quarter of trading that was boosted by a rising demand in sportswear, as revenues rose by 3.4% to €2.6bn (£2.2bn) against the prior year.Gross merchandise volume (GMV) rose by 2.8% to €3.8bn (£3.26bn) and adjusted EBIT rose to €171.6m (£147m) in the second quarter, up from €144.8m (£124m) the prior year.
The improvement in profitability was said to be driven by “successful” inventory management and lower fulfilment costs according to the group, with the EBIT margin increasing 0.8 percentage points to 6.5% of revenue.
In its latest trading update, the group said its accelerating growth and improved profitability were due to its expanded lifestyle offerings, with particularly strong growth in Sports, Designer and Beauty.
Business-to-Consumer (B2C) in particular saw strong growth in Sports, Designer and Beauty, while Business-to-Business (B2B) grew sales by 10.3%.
In addition, the number of active customers grew by 300,000 to 49.8 million from the end of the first quarter of 2024.
Zalando confirmed its full-year guidance for 2024, expecting both GMV and revenue to grow by 0% to 5% this year compared to FY23.
It added that it will “continue to focus on profitable growth”, with continued margin progression. Adjusted EBIT is expected to be between €380m (£326m) and €450m (£386m) for the full-year.
Robert Gentz, Zalando co-CEO, said: “Our ecosystem strategy empowers us to cover a larger share of the fashion and lifestyle e-commerce market, and the positive response from customers and partners in the second quarter validates our vision.
“Our B2C customers are excited by the quality brands we are adding, spending time with our new digital tools and content, and embracing our expanding lifestyle offerings in areas such as Sports, Designer and Beauty. We also recorded double-digit growth in B2B, demonstrating that both our growth vectors are delivering.”
