Zalando increases forecast after excellent quarter

Zalando has increased its forecast for the full year 2019 after it had an excellent second quarter, in which turnover went up 20 % to 1.6 billion euros.

Transition in full swing

Moreover, Zalando’s Gross Merchandise Value (the total of all goods sold on the platform, including those by partners on the online marketplace) went up 23.7 % to 2.0 billion euros. As the adjusted EBIT reached 101.7 million euros, other indicators that went up significantly were the number of active customers (+ 15.2 %) and the number of orders (+ 24.7 %).

“Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy”, CFO David Schröder said in a press release.

These strong results allow the German company to adjust its forecasts for the full year upwards, expecting a profit nearer to 225 million euros than to 175 million. An increased customer satisfaction should help reach this goal: a target that should be reached through a new distribution centre in the Netherlands (allowing faster deliveries in neighbouring countries) and through a test with same-day deliveries in Switzerland.