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Zalando, one of Europe’s leading online platforms for fashion and lifestyle, reported a revenue increase of 2.3% to €2.3bn (£2bn) in the first quarter of 2023.
The company reported a gross merchandise volume increase of 2.8% to €3.2bn (£2.8bn) and adjusted earnings before tax level compared with -€52m (-£45m) in the first quarter a year ago. The number of active customers grew 4.8% versus last year to €51.2m (£44.8m).
Robert Gentz, co-CEO of Zalando, said: “The first quarter demonstrated how flexible our business model is, enabling us to perform in a challenging market environment as we saw strong customer demand at our Offprice segment and a strong performance of the partner business.
“Curated product drops with brands such as Adidas and Salomon or teaming up with designer brands to create capsule collections led to increased engagement with our customers. These exclusive and limited-edition products keep our customers coming back more regularly.”
Zalando’s growth was helped by rising demand at its online shopping club Lounge by Zalando and partners selling more fashion and beauty products on the company’s platform.
Lounge by Zalando, an online shopping club that offers customers limited-time offers and discounts on premium brands and which makes up a major component of the Offprice segment, contributed to a 33% increase in revenues at Offprice. The enhanced on-site customer experience and new brand identity introduced in January drew positive reactions from users interacting with the Lounge by Zalando app.
Zalando also revealed to have invested in the “fashion discovery experience” with initiatives such as Multi-Channel Fulfilment, which the company launched in October.
The company has confirmed its full year guidance for 2023 with expected GMV to grow between 1% and 7%. Revenue is expected to develop in the range of -1% to 4% compared with last year while adjusted EBIT to be between €280m (£245m) and €350m (£306m) this year.
Dr. Sandra Dembeck, Zalando CFO, said: “As overall demand remains muted, we continue our focus on driving sustainable efficiencies in fulfilment and marketing. At the same time, we are continuing to invest selectively through the cycle into new growth opportunities, ready to capture demand when the market rebounds.”
