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DGAP-News: Zalando SE
/ Key word(s): 9 Month figures
Zalando Records Exceptionally Strong and Profitable Growth in Third Quarter
BERLIN, NOVEMBER 4, 2020 // Zalando SE, Europe's leading online platform for fashion and lifestyle, achieved exceptional profitable growth in the third quarter of 2020. Gross Merchandise Volume (GMV) and revenue grew by 29.9 percent and 21.6 percent to 2.5 billion and 1.8 billion euros, respectively. The strong growth was, in particular, driven by the accelerated consumer demand shift towards digital offerings in the course of the ongoing coronavirus pandemic, as well as the strong performance of Zalando's Partner Program and Zalando Lounge. In the same period Zalando achieved an adjusted EBIT of 118.2 million euros or a margin of 6.4 percent. Significantly improved cost of sales and efficiency gains in fulfillment drove profitability in the third quarter. As a result of the exceptionally strong sell-through in the spring/summer season, Zalando released inventory valuation allowances in the amount of 35 million euros, creating a positive one-time effect on profitability. David Schröder, Chief Financial Officer, says: "As the second coronavirus wave is starting more forcefully than anticipated, we are much better prepared than earlier in the year. Our Starting Point for Fashion strategy continues to enable us to turn the accelerated consumer demand shift towards digital offerings into business opportunities for Zalando and its partners. We will continue to invest to drive strong growth beyond 2020 following our key strategic priorities: growing our active customer base, deepening customer relationships and driving our platform transition." As a result of its strong financial performance, Zalando raised its outlook for the 2020 financial year on October 8, 2020. The company now expects gross merchandise volume (GMV) to grow 25-27 percent, revenues to grow 20-22 percent and an adjusted EBIT of 375-425 million euros. In its outlook published on July 15, 2020, Zalando previously assumed GMV growth of 20-25 percent, revenue growth of 15-20 percent and adjusted EBIT of 250-300 million euros for the full year. CONTINUED PRIORITY ON HEALTH AND SAFETY OF EMPLOYEES Robert Gentz, Co-CEO, says: "The success of Zalando rests entirely on our teams who have shown exceptional performance during an unprecedented time. To recognize this exceptional commitment and contribution, we decided to grant all 14,000 employees a one-time bonus of 500 euros." ZALANDO REMAINS COMMITTED TO BE PART OF THE SOLUTION David Schneider, Co-CEO, says: "Across Europe, a new round of lockdown restrictions has been put in place to curb the spread of Coronavirus during the commercially most relevant time of the year for many brands and retailers. More than ever it is important for us to tackle this as a team, work even closer together and come out of the pandemic stronger together." Especially Connected Retail has become part of the solution for many brick-and-mortar stores during the lockdowns. It has already become Europe's largest platform for fashion stores with about 2,000 active stores connected and Zalando aims to triple the size of connected stores in 2021. As a meaningful contributor to its platform transition, to Denmark, Finland and Norway, as of November 1, 2020. With Austria, Switzerland, France, Italy and Belgium five additional countries will follow in 2021. (End)
Definitions are available in the Q3 and annual report.
MEDIA INQUIRIES INVESTOR/ANALYST INQUIRIES
04.11.2020 Dissemination of a Corporate News, transmitted by DGAP - 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: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1145389 |
| End of News | DGAP News Service |
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1145389 04.11.2020
