Zalando’s profits in the second quarter saw a significant increase, driven by strong performance in its sports, designer, and beauty categories. The company’s adjusted EBIT rose by 18% to £147.1m (€171.6m) from £124.2m (€144.8m). This improvement was credited to effective inventory management and reduced fulfillment costs, resulting in an EBIT margin increase of 0.8 points to 6.5%. Sales went up by 3.4% to £2.2bn (€2.6bn), with gross merchandise volume also rising by 2.8% to £3.2bn (€3.8bn).
Zalando capitalized on the ‘Summer of Sports’ momentum by launching targeted campaigns in major European cities and introducing its first adaptive sports collection. This effort led to the best monthly sports performance in June. The company recently updated its strategy to focus on becoming the leading pan-European fashion and lifestyle ecommerce ecosystem, emphasizing growth in both business-to-consumer (B2C) and business-to-business (B2B) segments.
The company reaffirmed its full-year guidance, anticipating an adjusted EBIT in the range of £326.2m to £386.3m (€380m to €450m), with a projected 0% to 5% growth in both GMV and revenue for the year. Zalando also announced the decision of its chief financial officer, Dr. Sandra Dembeck, not to extend her contract beyond February 28, 2025, as she pursues a new career opportunity.
Co-chief executive of Zalando, Robert Gentz, expressed confidence in their ecosystem strategy, emphasizing the positive response from customers and partners. He highlighted the growing interest of B2C customers in the company’s new brand offerings, digital tools, and expanding lifestyle selections. Zalando also saw double-digit growth in their B2B segment, indicating success in both growth areas.
