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Zalando has upped its guidance after it revealed its EBIT rose to €186m (£162m), up from €172m (£150m), in the second quarter, representing a profit margin of 6.5%.
Alongside this, the company’s revenues rose 7.3% to €2.8bn (£2.4bn) while its gross merchandising value rose 5% to €4.1bn (£3.6bn).
The company expects full year adjusted EBIT of between €550m-€600m (£479m-£523m), revenues of between €12.1bn- €12.4bn (£10.5bn-£10.8bn) and a GMV of between €17.2–€17.6bn (£15bn-£15.3bn).
Its B2C growth vector recorded a 6.1% surge in the number of active customers, reaching a new high of 52.9 million.
It stated that a continued investment in customer experience with the launch of AI-driven discovery feed will deliver even more personalised inspiration and boost organic customer engagement
Meanwhile, its B2B growth vector maintained strong momentum, driven by double-digit growth in ZEOS Fulfilment. Additionally the launch of a new Shopify application connects Shopify merchants directly to the ZEOS platform
David Schröder, co-CEO of Zalando, said: We’re embracing the immense opportunities ahead of us with the expansion of our offerings and long-term partnerships in both B2C and B2B. In B2C, Zalando is continuing to redefine fashion and lifestyle shopping by making the customer experience more inspiring and personalised with our new AI-driven discovery feed, boosting customer engagement and supporting our advertising business.
“In B2B, the launch of our ZEOS Shopify application and the collaboration with About You’s Scayle software unit are milestones in building a software ecosystem that supports our merchants’ most strategic digital channel: their own e-commerce.”
Pippa Stephens, senior apparel analyst at GlobalData, added: “This is driven by its strong selection of brands, making it more desirable than competitors like ASOS, alongside its technological expertise, helping it to keep gaining new B2B partners. The retailer’s purchase of online pureplay ABOUT YOU completed last month, with it now owning 91.45% of its share capital.
“This will allow it to increase its hold of the European online apparel market, after facing increased competition from About You over the past few years, with both serving similar regions and demographics, as well as offering a comparable selection of third-party brands.”
