Zalando upgrades forecasts after covid-boost

A strong second quarter has led Zalando to increase its forecasts to a full-year sales growth of 15 to 20 %. The German webshop was helped by the coronavirus pandemic, which forced a lot of people to shop online.

Covid boost

Zalando’s provisional results show a second quarter trading volume that was around a third higher, at 2.67 to 2.71 billion euros. The company’s turnover followed suit, with a 26 % growth to 2.01 to 2.05 billion euros. The adjusted EBIT would more than double to an amount in the 200 to 220 million euro fork.

The covid lockdowns forced a lot of consumers to shop online, as in many countries most or all physical stores were closed. Zalando was able to welcome three million new customers in the past quarter, leading the company to push its forecasts upwards. The Germans now believe they can achieve a full-year turnover growth of 15 to 20 % and an adjusted EBIT growth to 250 to 300 million euros.

Moreover, 180 new partners joined the platform, doubling its turnover on a yearly basis. Among the announced newcomers for this second semester is Swedish design brand Arket (part of the H&M group). Belgian fashion brand Paprika announces a partnership as well, expanding its range to thirteen countries – of which seven are markets in which the company has no physical stores.