(MENAFN- MarketResearchDirect) 20Sep 2019 byJohn Wilson
Strongest ever Q2 active customer growth, fastest site visit growth since 2013
Profitable growth continued: GMV up 23.7% to EUR 2.0 billion, adjusted EBIT of EUR 102 million
Zalando raises profit outlook to the upper half of the EUR 175-225 million adjusted EBIT range
GMV growth expected in the 20-25% range, revenue growth around the lower end of the range
BERLIN, AUGUST 1, 2019 // Zalando SE has successfully grown its business in the second quarter of 2019. The number of active customers grew significantly by 3.7 million (15.2%) year-over-year to 28.3 million across Zalando's 17 European markets. In the same period, site visits went up 34.3% to 986.4 million, 84% of which came through mobile devices, resulting in a record number of orders (36.1 million).
Chief Financial Officer David Schröder says: 'More customers than ever before have chosen Zalando as their starting point for fashion. This proves that our continuous efforts to deliver a best in class fashion experience pay off.'
Several new initiatives to excel the customer experience are already underway: The company will start building a new warehouse in the Netherlands this summer to better serve customers across its Western European markets and ready the company's logistics capacities for future growth. In Germany, Zalando has doubled the number of parcels delivered on the same or next day compared to the first quarter and in Switzerland, it is currently testing same-day evening delivery in the Zurich region.
Zalando continues to broaden its assortment by investing in sustainable fashion and premium assortment, by extending its Partner Program and by expanding its cooperations with offline retailers. To date, more than 1,300 offline stores are connected to the Zalando platform.
In the second quarter of 2019, Zalando has continued to gain market share. Gross Merchandise Volume (GMV) grew by 23.7% to EUR 2.0 billion; revenues increased by 20.1% to EUR 1.6 billion. In the same period, Zalando achieved an adjusted EBIT of EUR 101.7 million or a margin of 6.4%.
'Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy,' says David Schröder.
Following a strong first half of 2019, Zalando raises its profitability outlook to the upper half of the adjusted EBIT range of EUR 175-225 million (previously: in the EUR 175-225 million range). The company confirms its full-year guidance of GMV growth of 20% to 25% and now expects revenue growth around the low end (previously: at the low end) of this range. Zalando confirms its expected capital expenditure of around EUR 300 million.
The earnings presentation for analysts and investors is available on the Zalando Investor Relations website. Zalando will report the results for the third quarter of 2019 on October 31, 2019.
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Tags:Zalando
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