Online fashion marketplace Zalando (ZALG.DE) reported an 18.5% increase in its operating profit for the second quarter on Tuesday, driven by better inventory management and reduced order fulfillment costs. The company’s sports, designer, and beauty segments were key contributors to this growth.
Zalando has strategically focused on higher-priced brands and the expanding sportswear category, alongside growing its partner business, to compete with fast-fashion rivals like Shein. Shares in Zalando were up 7.3% in premarket trading.
Quarterly adjusted earnings before interest and tax (EBIT) climbed to €171.6 million ($187.9 million), up from €144.8 million in the same period last year. Gross merchandise volume (GMV), a critical revenue metric, increased by 2.8% year-over-year to €3.8 billion, while revenue rose 3.4% to €2.6 billion.
During the quarter, Zalando launched sports campaigns in major European cities, featuring athletes like Robert Lewandowski and David Alaba, to leverage events such as the UEFA Euro 2024 and the summer Olympics. The company also debuted its first in-house sports collection with 14 items.
The number of active customers grew by 300,000 to 49.8 million, though it remained below the 50.5 million recorded in the same quarter last year.
In other news, Zalando’s Chief Financial Officer, Sandra Dembeck, announced she will not renew her contract beyond February 28, 2025. The company maintains its forecast for GMV and revenue growth to match or exceed last year’s figures, with adjusted EBIT expected to range between €380 million and €450 million.
Post a Comment