After a stunning first quarter, Zalando is raising its outlook for the full year. The fashion platform is also investing heavily in the expansion of its logistics network.
Strongest customer growth since 2013
The company now expects revenues to grow by 26 to 31% to between 10.1 and 10.5 billion euros. The adjusted operating result this year would amount to between 400 and 475 million euros. Zalando previously expected a revenue growth of 24 to 29 percent and an adjusted operating profit of 350 to 425 million euros.
The increased prospects come after an exceptional first quarter. In the past three months, Zalando has experienced its strongest customer growth since 2013, with 41.8 million active customers. Partly as a result of this, sales rose by a massive 46.8% to 2.2 billion euros. The adjusted operating profit amounted to 93.3 million euros, and was mainly the result of strong resales and a persistently lower return rate.
To enable its future growth ambitions, Zalando will expand its European logistics network, which currently comprises 10 fulfilment centres, by five units in 2023. Two distribution centres in Rotterdam and Madrid are nearing completion and will be commissioned in the course of this year. Construction work for three other warehouses in France, Germany and Poland will start in the next 12 months.