Zalando reports growth in second quarter and updates forecasts
At the same time, the company published new annual forecasts. These forecasts include, for the first time, the anticipated contributions of the e-commerce company About You Holding SE. The acquisition of About You was completed in July.
Group revenue increases by around seven percent
In the second quarter, group revenue amounted to just under 2.84 billion euros. This represented an increase of 7.3 percent compared to the same period of the previous year. Both divisions contributed to the significant increase. In the business-to-consumer (B2C) area, revenue rose by 6.8 percent to 2.6 billion euros. In the business-to-business (B2B) segment, revenue increased by 12.2 percent to 262 million euros. Gross merchandise volume (GMV) grew by 5.0 percent to 4.06 billion euros.
Zalando also increased its earnings. Adjusted earnings before interest and taxes (EBIT) increased by 8.1 percent to 185.5 million euros. Reported net profit was 96.6 million euros. This is 0.9 percent above the prior-year level.
In the first six months, group revenue reached 5.25 billion euros. This corresponds to an increase of 7.6 percent compared to the previous year. Adjusted EBIT grew by 16.2 percent to 232.3 million euros. Net profit increased by 22.6 percent to 106.5 million euros.
New annual forecasts incorporate About You acquisition
Following the consolidation of About You, Zalando now forecasts a gross merchandise volume (GMV) of 17.2 to 17.6 billion euros for 2025. This would represent an increase of 12 to 15 percent compared to the previous year. Annual revenue is expected to reach between 12.1 and 12.4 billion euros. This would correspond to an increase of 14 to 17 percent.
The target for adjusted earnings before interest and taxes (EBIT) is between 550 and 600 million euros. "This increase results from Zalando's strong performance in the first half of the year. It also reflects the company's expectation to benefit from further efficiency gains in its costs in the second half of the year, as well as from initial synergies," the company explained. Zalando estimated its expected capital expenditure for the current year at 200 to 280 million euros.
Co-CEO David Schröder highlights "important milestones"
Co-CEO David Schröder sees the company on the right track. "We are capitalising on the enormous market opportunities by expanding our offering and through long-term partnerships, both in the B2C and B2B areas," he explained in a statement. "In the B2C area, we are redefining fashion and lifestyle shopping by making the customer experience even more inspiring and personal with our new AI-powered Discovery Feed. This strengthens customer loyalty and supports our advertising business."
In the B2B area, "the launch of our ZEOS Shopify application and the collaboration with About You's software division, Scayle, are important milestones," Schröder emphasised. "Both help us build a software ecosystem that effectively supports brands' and retailers' core digital sales channels – their own online shops and apps."
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