UK markets open in 19 minutes
  • NIKKEI 225

    27,885.87
    +65.47 (+0.24%)
     
  • HANG SENG

    19,403.18
    -115.11 (-0.59%)
     
  • CRUDE OIL

    77.59
    +0.66 (+0.86%)
     
  • GOLD FUTURES

    1,782.50
    +1.20 (+0.07%)
     
  • DOW

    33,947.10
    -482.78 (-1.40%)
     
  • BTC-GBP

    13,938.38
    -323.81 (-2.27%)
     
  • CMC Crypto 200

    401.67
    -9.54 (-2.32%)
     
  • ^IXIC

    11,239.94
    -221.56 (-1.93%)
     
  • ^FTAS

    4,143.21
    +4.40 (+0.11%)
     

Zalando SE: Zalando delivers growth in third quarter with active customers surpassing 50 million

EQS-News: Zalando SE / Key word(s): Quarter Results
Zalando SE: Zalando delivers growth in third quarter with active customers surpassing 50 million
03.11.2022 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Zalando delivers growth in third quarter with active customers surpassing 50 million

  • Gross Merchandise Volume (GMV) gains 7.1%; revenue climbs 2.9%; adjusted EBIT increases to 13.5 million euros in third quarter

  • Number of active customers grows 8%, exceeding 50 million for first time

  • Introduction of minimum order value improves profitability

  • Zalando confirms full-year forecast and expects that results will come in at lower end of the range

Berlin, November 3, 2022 // Zalando, one of Europe’s leading online platforms for fashion and lifestyle, delivered growth in the third quarter. The number of active customers increased by 8% compared with a year ago, exceeding 50 million for the first time. Zalando’s loyalty program, Plus, almost tripled its membership. The company took successful steps to drive profitability, contributing to an improvement in earnings and softening the impact of declining consumer sentiment.

“I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them,” said Robert Gentz, co-CEO at Zalando. “We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”

GMV grew 7.1% to 3.28 billion euros in the third quarter and sales rose 2.9% to 2.35 billion euros. Adjusted earnings before interest and taxes (adjusted EBIT) increased to 13.5 million euros from 9.8 million euros in the same quarter a year ago.

Zalando continues to be laser-focused on protecting profitability. The introduction of a minimum order value has encouraged customers to increase the size of their basket or pay the delivery fee. As a result, orders below the minimum order value are now profitable. Zalando captured further marketing efficiencies in the third quarter, reducing costs by almost 100 million euros so far this year. The company also drove efficiency improvements across its European logistics network including managing excess inventory.

Zalando is advancing on its mission to drive customer excitement around top brands and assortment. The first collaboration with Highsnobiety, just three months after the acquisition, improves storytelling, helping Zalando engage more with relevant audiences and creating deeper emotional bonds with customers. Zalando and Nike deepened their partnership, enabling customers to shop for Nike member-exclusive products on Zalando. The company’s partnership with Sephora grew, adding more beauty brands on the platform and expanding into Italy.

Brand partners and stores continue to successfully grow their business on Zalando. The proportion of partner businesses contributing to Fashion Store GMV grew by seven percentage points compared with the same quarter last year, underlining the attractiveness of Zalando’s platform for partners and the company’s progress against its strategic objective to grow its partner business share to 50% of Fashion Store GMV by 2025.

“With consumer confidence at new lows and ongoing inflation, it was a prudent decision to start early with decisive action and measures to support profitability,” said CFO Sandra Dembeck. “Although it’s not crystal clear how consumer spending will play out in the final quarter, we are working hard to execute and deliver on our strategic priorities and financial outlook.”

Zalando confirms outlook

Zalando confirms its guidance provided on 23 June 2022 for the financial year 2022 with gross merchandise volume expected to grow 3% – 7% to 14.8 billion to 15.3 billion euros. Revenue is expected to grow 0% – 3% to 10.4 billion to 10.7 billion euros with an adjusted EBIT of 180 million to 260 million euros. The company now expects to reach the lower end of these ranges.

The third-quarter 2022 financial report, as well as the earnings presentation for analysts and investors, is available on the Zalando Investor Relations website. Zalando will report the results for the full year 2022 on March 7, 2023.

(End)

  

Zalando group – key figures (in EUR million) 

 

Q3/22

Q3/21

Group GMV

3,282.8

3,065.4

Percent growth

7.1%

24.6%

Group revenue

2,349.1

2,283.4

Percent growth

2.9%

23.4%

Fashion Store

2,090.1

2,058.4

Thereof DACH

913.3

916.7

Thereof Rest of Europe

1,176.6

1,141.4

Offprice

377.2

360.6

Other

104.5

73.2

Reconciliation

-222.7

-208.8

Adjusted group EBIT

13.5

9.8

Adjusted group EBIT margin

0.6%

0.4%

Fashion Store

-3.0

10.9

Thereof DACH

14.2

52.4

Thereof Rest of Europe

-17.2

-41.6

Offprice

8.4

-3.0

Other

7.5

2.4

Reconciliation

0.5

-0.5

Net working capital

121.6

118.1

Capital expenditure

-77.0

-57.7

Net income

-35.4

-8.4

 

Zalando group – key performance indicators

 

Q3/22

Q3/21

Active customers (million) (over 12 months)

50.2

46.3

Number of orders (million)

58.8

55.8

Average orders per active customer (over 12 months)

5.2

5.1

Average basket size (EUR) (over 12 months)

56.2

57.4

 

Definitions are available in the Quarterly Report

 

 

About Zalando

Zalando is a leading European online platform for fashion and lifestyle. Founded in Berlin in 2008, we bring head-to-toe fashion to over 50 million active customers in 25 markets, offering clothing, footwear, accessories, and beauty. The assortment of international brands ranges from world famous names to local labels. Our platform is a one-stop fashion destination for inspiration, innovation, and interaction. As Europe’s most fashionable tech company, we work hard to find digital solutions for every aspect of the fashion journey: for our customers, partners and every valuable player in the Zalando story. Our vision is to be the Starting Point for Fashion and a sustainable platform with a net-positive impact for people and the planet.

 

Media inquiries
Carolyn Groß
Sheenagh Matthews
Business & Financial Communications
presse@zalando.de

 

Investor/analyst inquiries
Patrick Kofler
Investor Relations
investor.relations@zalando.de

 

 

 

 

 


03.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

Language:

English

Company:

Zalando SE

Valeska-Gert-Straße 5

10243 Berlin

Germany

E-mail:

investor.relations@zalando.de

Internet:

https://corporate.zalando.de

ISIN:

DE000ZAL1111

WKN:

ZAL111

Indices:

DAX

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1478007


 

End of News

EQS News Service

show this
show this