Record number of orders drive Zalando's revenues by 26.7 percent

Europe’s online fashion platform Zalando, saw more than one billion site visits in a single quarter, up 37.3 percent year-over-year. In the third quarter of this fiscal, the company continued to expand its customer base to 29.5 million, up 17.5 percent year-over-year. The company said in a statement that driven by increasing numbers of orders, up 25.4 percent to 34.7 million, Zalando grew its revenues by 26.7 percent to 1.5 billion euros (1.6 billion dollars) and the gross merchandise volume (GMV) by 24.6 percent to 1.9 billion euros (2.1 billion dollars). The company also achieved a positive adjusted EBIT of 6.3 million euros (7 million dollars) or a margin of 0.4 percent.

Commenting on the third quarter update, David Schröder, CFO, Zalando SE, said: “2019 has been a very successful year for us so far. We had a strong third quarter with more active customers who more and more frequently look for inspiration on Zalando. We are growing at a high pace across all regions. We want to maintain the momentum for a strong finish to the year and look forward to celebrating together with our customers the upcoming Cyber Week and the festive season.”

Zalando posts strong growth across core markets and first nine months

In the third quarter, Zalando revenues in the DACH region went up 22.9 percent, whilst business in the Rest of Europe region grew strongly by 30.8 percent. The company said, positive development was especially pronounced in Spain, the Nordics, as well as the Czech Republic, where the business has grown at a high pace since the launch one year ago. Zalando will continue to further invest in the market and will expand Zalando Lounge to the Czech Republic in the fourth quarter.

In the first nine months of 2019, Zalando grew its GMV by 23.5 percent to 5.7 billion euros (6.3 billion dollras) and its revenues by 20.7 percent to 4.5 billion euros (5 billion dollars) and achieved an adjusted EBIT of 114.5 million euros (127.7 million dollars), which corresponds to a margin of 2.5 percent.

On the back of the strong results of the first nine months, Zalando added that it is confident about its full-year guidance for 2019 and expects a GMV growth of 20 to 25 percent and a revenue growth around the low end of this range. It expects the adjusted EBIT to be in the upper half of the range of 175 to 225 million euros and capital expenditure of around 300 million euros.

Picture:Zalando newsroom