Online fashion platform Zalando increased its revenue with 3.4 percent in the second quarter, compared to that period last year, to 2.6 billion euros. It also improved its profitability again. As a result, the company has confirmed its expectations for the full financial year.
Earlier this year, Zalando announced that its revenue decreased with 0.6 percent in the first quarter. At the time, its GMV increased to 3.3 billion euros and its EBIT rose to 28.3 million euros. It was still operating at a loss, of 8.9 million euros.
Margin of 6.5%
Compared to the second quarter in 2023, Zalando was able to increase its GMV with 2.8 percent, to 3.8 billion euros. Its adjusted EBIT climbed to 171.6 million euros, an increase of 0.8 percentage points. This represents a margin of 6.5 percent of the company’s revenue.
While the number of active customers increased by 300,000 since Q1, it is still lower than a year ago
According to the company, its number of active customers increased by 300,000 since the end of the first quarter. It now has 49.8 million active customers. This is less than a year ago, when the platform had 50.5 million active customers. The number of orders increased slightly in a year, from 63.2 million to 63.4 million. The average basket size also increased, from 58.1 euros to 60.8 euros.
Driving forces behind growth
Zalando think its revenue and GMV growth are caused by the expansion of lifestyle offerings, with growth in Sports, Designer and Beauty. It also invested in AI-powered inspiration tools.
The platform has also increased its B2B services. ZEOS expanded into Switzerland in the second quarter. The company’s B2B sales increased 10 percent, to 233.8 million euros.
Plans for the rest of the year
Earlier this year, Zalando already announced that it expects both its GMV and revenue to grow between 0 to 5 percent, compared to 2023. It expects the adjusted EBIT to be between 380 million euros and 450 million euros.
Zalando wants to use social commerce to give shoppers a more personalized experience
To achieve this, it wants to develop more generative AI solutions and add a new tech site in China. It wants to combine the local expertise in social commerce, to give European shoppers a more personalized experience.
