Zalando revenues rise by 2.9% in Q3
The fashion and lifestyle platform’s results come as the number of its active customers grew by 8%, exceeding 50 million for the first time
Zalando’s revenues have increased by 2.9% in its third quarter, with its adjusted EBIT increasing to €13.5m (£11.7m), up from €9.8m (£8.49m) in the same quarter a year ago.
The group reports that its gross merchandise volume (GMV) has risen 7.1% to €3.28bn (£2.84bn), while the introduction of a minimum order value has improved profitability for the business.
The fashion and lifestyle platform’s results come as the number of its active customers grew by 8%, exceeding 50 million for the first time and almost tripling its memberships.
Looking ahead, it expects its gross merchandise volume to grow 3% to 7% to between €14.8bn (£12.8bn) and €15.3bn (£13.2bn), while its revenue is expected to grow 0% to 3% to between €10.4bn (£9bn) and €10.7bn (£9.2bn), with an adjusted EBIT of €180m (£155m) to €260m (£225.2m).
However, the brand has confirmed its expectations for the full-year results will come in at the lower end of these ranges.
Robert Gentz, co-CEO of Zalando, said: “I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them. We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”
Sandra Dembeck, CFO of Zalando, added: “With consumer confidence at new lows and ongoing inflation, it was a prudent decision to start early with decisive action and measures to support profitability. Although it’s not crystal clear how consumer spending will play out in the final quarter, we are working hard to execute and deliver on our strategic priorities and financial outlook.”
