Online sales platform Zalando has reached the threshold of fifty million active customers in a single quarter for the first time, returning to turnover growth in the process. On the flip-side, losses also continue to rise.
More new customers
Zalando saw its sales rise by 2.9 % to 2.35 billion euros in the third quarter. Its Gross Merchandise Value even went up by 7.1 % to 3.28 billion euros. The German fashion platform is satisfied with that growth in what it calls the current turbulent times, especially as the second quarter had fallen below all expectations.
In the third quarter, the number of active customers increased by 8 %, reaching the fifty million mark. Its loyalty programme Plus almost tripled in membership, and growth also came courtesy of partnerships with beauty retailer Sephora, new subsidiary Highsnobiety and Nike.
Question mark over Q4
Zalando proudly announced that it has already been able to cut costs by 100 million euros this year, thanks to marketing efficiencies. The new minimum order value works especially well: only above a certain amount, delivery is free. Since customers now have to pay delivery charges for small orders, even those orders are profitable today. Pre-tax profit (EBIT) improved from 9.8 million euros to 13.5 million euros, but net losses rose sharply from 8.4 million euros to 35.4 million euros.
For the full year, Zalando confirms its lowered forecast from in June. CFO Sandra Dembeck admits that consumer confidence is at a new low and it is not clear how consumer spending will develop in the last quarter, but stands by her strategic priorities and financial outlook. Sales are expected to grow by 0 to 3 % to 10.5 billion euros, with an adjusted EBIT of 180 to 260 million euros.