Zalando experienced a notable rise in profits during the second quarter, primarily fueled by robust sales in its sports, designer, and beauty segments. The company’s adjusted EBIT increased by 18%, reaching £147.1m (€171.6m) compared to £124.2m (€144.8m) from the previous year. This growth was attributed to strategic inventory management and lower fulfillment costs, which contributed to an EBIT margin improvement of 0.8 points, bringing it to 6.5%. Sales grew by 3.4%, totaling £2.2bn (€2.6bn), with gross merchandise volume also seeing a 2.8% increase to £3.2bn (€3.8bn).
Zalando took advantage of the ‘Summer of Sports’ trend by rolling out targeted promotions in key European cities and launching its inaugural adaptive sports collection, which resulted in an exceptional sports performance in June. The company recently revised its strategy to strive for leadership as a pan-European fashion and lifestyle ecommerce platform, highlighting growth in both its business-to-consumer (B2C) and business-to-business (B2B) sectors.
The company has maintained its full-year outlook, forecasting an adjusted EBIT between £326.2m and £386.3m (€380m to €450m) and expecting a growth rate of 0% to 5% in both gross merchandise volume and revenue for the year. Additionally, it announced that its chief financial officer, Dr. Sandra Dembeck, would not renew her contract past February 28, 2025, as she seeks a new career path.
Co-chief executive Robert Gentz showed confidence in their ecosystem strategy, noting the favorable reactions from customers and partners. He pointed out the increasing interest among B2C customers in the company’s new brand initiatives, digital offerings, and broader lifestyle selections. Zalando also reported double-digit growth in its B2B sector, signaling progress in both areas of development.
