After three quarters of decline, Zalando‘s sales rose slightly again in the last quarter. The platform is expanding its range, focusing on content and also developing its B2B logistics services.
“Return to growth”
“We are returning to growth”, says a relieved Zalando. Gross sales volume (GMV, or the value of all sales) rose by 1.3% to 3.3 billion euros in the first quarter. However, the turnover (commissions on sales) that remains for the company decreased to 2.2 billion euros, compared with 2.3 billion euros last year.
Adjusted EBIT was 28.3 million euros, in line with market expectations and representing a margin of 1.3%. A year earlier, operating profit was negative by 0.7 million euros. According to the company, profitability has improved significantly thanks to lower execution costs and better stock management.
More and more logistics
Zalando now distinguishes between two main areas of activity: in addition to its B2C retail offering, the German group also plans to handle online order fulfilment for other brands. This B2B arm, called Zeos, currently has 27 customers and sales of 215 million euros. Belgian brand LolaLiza, among others, now uses Zalando to fulfil its orders abroad.
For the fashion platform, Zalando is then working on a wider range, more advice through digital tools and inspirational content. For example, customers in Spain, France and Italy can now get size advice using a body measurement tool and there is now Trend Spotter, which shows shoppers the latest fashion trends in six European capitals – based on Zalando’s own data.
Zalando confirms its outlook for the full year 2024 and expects GMV and sales to increase by 0% to 5% this year compared to 2023. The company continues to target profitable growth, with improved margins, and adjusted EBIT is expected to be between 380 million euros and 450 million euros.
