Zalando posts 40 percent GMV growth in Q2, reiterates outlook

Zalando’s gross merchandise volume (GMV) increased 40 to 3.8 billion euros in the second quarter supported by continued strong consumer demand for online offerings, as extended lockdowns remained in place in some markets at the beginning of the quarter. Group revenue reached 2,733.1 million euros compared to 2,034.7 million euros in the second quarter of 2020.

The company said, strong performance of Zalando’s partner business as well as successful sales events also supported growth in the second quarter. Zalando reported an adjusted EBIT of 184.1 million euros and a margin of 6.7 percent.

Commenting on the company’s financial results, David Schröder, Zalando’s chief financial officer, said: “Even more than our outstanding financial performance in the second quarter, the increasing engagement by customers and brands underlines the long-term relevance of the Zalando platform and is a strong proof point of our successful strategy.”

Highlights of Zalando’s Q2

Over the past twelve months, more than 10 million active customers joined the Zalando platform, resulting in 44.5 million active customers at the end of the second quarter. Customers engaged with Zalando more frequently, with average orders per active customer reaching 5.

The company added that Partner Program GMV grew strongly, over 100 percent year-over-year in the first half of 2021 driven by new partners and increased stock commitments as well as successful internationalization of existing partners. At the end of the first half of 2021, close to 4,700 brick-and-mortar stores were active in the Connected Retail program and sold through the Zalando platform.

Zalando reiterates outlook for financial year 2021

The company further said, GMV is expected to grow 31-36 percent to 14.0-14.6 billion euros, and revenues are expected to grow 26-31 percent to 10.1-10.5 billion euros.

Based on an outstanding topline performance and continued return rate benefits in the first half of this year, the company now expects adjusted EBIT in the upper half of the guided range of 400-475 million euros.

Starting in the fourth quarter of 2021, Zalando will offer beauty offerings of Sephora, its partner program initially in Germany. The company also further expanded its footprint across Europe, launching the Zalando platform in six new markets including Lithuania, Slovakia, Slovenia, Croatia, Estonia and Latvia.