Zalando recorded strong growth in its growth vectors Business-to-Consumer (B2C) and Business-to-Business (B2B) in the third quarter, driven by increasing consumer demand amid an industry-wide strong start to the autumn/winter season. To capture further growth opportunities, the company is investing in key areas of its ecosystem strategy, such as driving customer loyalty, expanding lifestyle propositions, making fashion discovery more entertaining, and further strengthening its European logistics network.
Zalando’s third-quarter gross merchandise volume (GMV) rose 7.8% to €3.5 billion compared with a year ago, revenue increased 5.0% to €2.4 billion and adjusted earnings before interest and taxes (adjusted EBIT) climbed from €23 million to €93 million. The adjusted EBIT margin increased by 2.9 percentage points to 3.9%. The number of active customers increased by about half a million quarter on quarter, bringing the total number of active customers to 50.3 million in the third quarter.
“Consumers love the quality brands we are adding, spend time with our exciting digital experiences, and embrace our expanding lifestyle offerings in areas such as Sports, Beauty, and Kids & Family,” said Sandra Dembeck, CFO at Zalando. “To capture further growth opportunities, we are investing in initiatives such as evolving our Plus loyalty program, offering more inspiring content, ramping up our tech hub in China, and driving localized convenience for customers via our European logistics network.”
Revenue in the B2C growth vector rose 4.3% to €2.2 billion. Adjusted EBIT rose to €86.7 million, representing an adjusted EBIT margin of 4.0% in the quarter compared to 0.5% a year prior, driven by improved gross margins and lower fulfillment costs. Revenue in the B2B growth vector continued to outgrow group revenues and increased 11.1% to €239.7 million. Adjusted EBIT fell from €12.6 million a year ago to €6.7 million, representing an adjusted EBIT margin of 2.8%, compared to 5.8% a year prior. The decrease was mainly caused by frontloaded investments to support future growth. Zalando confirmed its guidance, which was upgraded on 10 October 2024. The company expects gross merchandise volume (GMV) to grow between 3% and 5%, revenue to increase between 2% and 5%, and adjusted EBIT to grow to between €440 million and €480 million.
Zalando recorded strong growth in its growth vectors Business-to-Consumer (B2C) and Business-to-Business (B2B) in the third quarter, driven by increasing consumer demand amid an industry-wide strong start to the autumn/winter season.
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