Zalando continues to post strong growth momentum

Zalando said in a statement that the company significantly grew its business in 2019 with 31 million customers ordering from Zalando in the past year. For the full year, Europe’s online platform for fashion and lifestyle grew its GMV by 23.6 percent to 8.2 billion euros (8.9 billion dollars), its revenues by 20.3 percent to 6.5 billion euros (7.09 billion dollars) and achieved an adjusted EBIT of 224.9 million euros (245.4 million dollars).

In the fourth quarter, GMV increased 24.3 percent to 2.5 billion euros (2.7 billion dollars) and revenue rose 19.5 percent to 2 billion euros (2.1 billion dollars) at an adjusted EBIT of 110.4 million euros (120.4 million dollars), driven by record-breaking results during Cyber Week.

“We look back at a very successful year. We achieved strong financial results in every single quarter,” says Zalando CFO David Schröder in a statement, adding, “While delivering those results, we have made strong progress on our strategic agenda.”

Zalando reveals growth strategies for 2020

In line with its platform strategy, Zalando said, it significantly grew the share of the Partner Program, which at the end of the year accounted for 15 percent of Zalando’s Fashion Store GMV. Growth was enabled through Zalando Fulfillment Solutions (ZFS) and Zalando Marketing Services (ZMS). In the fourth quarter, around 40 percent of Partner Program items were shipped through ZFS.

In 2020, Zalando plans to expand its premium segment to include luxury brands. In order to gain more market share in the 38 billion euros market for premium fashion, Zalando added, the company plans to double its premium and luxury assortment before year-end 2023. The company recently added Moschino Couture and Alberta Ferretti.

Zalando launches pre-owned category

Additionally, the company will scale its pre-owned fashion pilot and launch “Pre-Owned” as a new category on the Zalando destination. Starting in the third quarter of 2020, customers will be able to buy curated pre-owned fashion, as well as sell their pre-owned fashion items to Zalando. Also, Zalando will extend its European logistics network by opening a local warehouse in Spain.

In line with its growth strategy for 2023/24, Zalando expects to grow its GMV between 20 and 25 percent and it expects revenue to grow between 15 and 20 percent in 2020. The company expects continued profitable growth and an adjusted EBIT between 225 and 275 million euros, as well as capital expenditure of around 330 million euros. These expectations exclude a potential negative impact caused by the coronavirus.

Picture: Zalando newsroom