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EQS-News: Zalando SE
/ Key word(s): Quarter Results
Zalando Boosts Quality Assortment, Grows Lifestyle Offering, Elevates Inspiration and Wins More B2B Partners to Deliver GMV Growth and Rising Profitability in Q1
Berlin, May 7, 2024 // Zalando delivered growth and improved profitability in the first quarter as it boosted the quality of its assortment, saw strong growth in its lifestyle offerings, made the customer experience more inspirational and added more logistics partners. The results are a validation of Zalando’s updated strategy, announced in March, to build the leading pan-European fashion and lifestyle e-commerce ecosystem around its two main growth vectors: Business-to-Consumer (B2C) and Business-to-Business (B2B). Gross merchandise volume (GMV) rose 1.3% to 3.3 billion euros in the first quarter compared with a year ago. Revenue was 2.2 billion euros compared with 2.3 billion euros in the prior-year period. Adjusted earnings before interest and tax (adjusted EBIT) rose to 28.3 million euros in the first quarter, in line with market expectations and representing a margin of 1.3%, compared to -0.7 million euros in the prior-year period. The substantial improvement in profitability was driven by lower fulfilment costs and successful inventory management, leading to an improved gross margin. The second growth pillar of Zalando’s B2C strategy - expanding further as a lifestyle destination by elevating existing categories into distinct propositions - showed strong results in the quarter. Propositions offer a captivating experience by combining a more comprehensive assortment, advice features, personalised inspiration and seamless convenience. As part of the new, elevated Designer experience on the website and app, which offers a luxury boutique-style space for designer brands, the company partnered with British-Japanese musician and actor Rina Sawayama as a new ambassador for its Designer offering. Zalando also launched an exclusive co-designed capsule collection called “Cinema Club” in collaboration with the Italian designer brand Aspesi. In the quarter, Zalando saw the strongest growth from its Beauty, Sports, Kids & Family as well as ‘Lounge by Zalando’ propositions. GMV at B2C rose 1.3% to 3.3 billion euros in the first quarter, supported by a timely start into the spring/summer season. Adjusted EBIT rose to 23 million euros, representing a margin of 1.1% in the quarter. The improvement in profitability by 1.4 percentage points compared to the same quarter of the previous year was driven by a higher gross margin and lower fulfilment costs. In B2B, Zalando is opening up its logistics infrastructure, software and service capabilities to be a key enabler for e-commerce transactions of brands and retailers, regardless whether they take place on or off the Zalando platform. Five more partners came on board for ZEOS multi-channel fulfilment in the first quarter bringing the total to 27 merchants. One example of a brand that recently signed up for a more comprehensive package of services is LolaLiza. The successful Belgian womenswear brand, which has been part of the partner program since 2020, recently signed a new deal to include ZEOS fulfilment for countries outside its home market and will move to Zalando’s marketplace integrator, Tradebyte. Revenue at the B2B growth vector increased 13% to 215 million euros and adjusted EBIT rose to 5 million euros from 4 million euros in the quarter from the year-ago period. The adjusted EBIT margin improved to 2.5% from 2.2% a year prior. Full-year guidance confirmed Zalando confirms its full year guidance for 2024 and expects both GMV and revenue to grow 0% to 5% this year compared to 2023. The company will continue to focus on profitable growth, with margin progression, and adjusted EBIT is expected to be between 380 million euros and 450 million euros. The Q1 2024 financial report, as well as the earnings presentation for analysts and investors, is available on the . Zalando will report the results for the second quarter 2024 on August 6, 2024. (End) Zalando at a glance
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Contact Investor/Analyst inquiries Patrick Kofler Investor Relations
07.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Zalando SE |
| Valeska-Gert-Straße 5 | |
| 10243 Berlin | |
| Germany | |
| E-mail: | |
| Internet: | |
| ISIN: | DE000ZAL1111 |
| WKN: | ZAL111 |
| Indices: | DAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1896881 |
| End of News | EQS News Service |
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1896881 07.05.2024 CET/CEST
