Zalando posts profitable growth in Q1, confirms full year outlook

In the first quarter of 2019, Zalando reported 14.1 percent increase in active customers to 27.2 million and 29.5 percent rise in site visits to 924 million. The company’s gross merchandise volume (GMV) increased by 23.1 percent to 1.8 billion euros (2.02 billion dollars) and revenues rose by 15.2 percent to 1.4 billion euros (1.5 billion dollars). Zalando added that it achieved a positive adjusted EBIT of 6.4 million euros (7.1 million dollars) or margin of 0.5 percent, which was supported by an improved gross margin.

Commenting on the first quarter trading, Zalando’s Co-CEO Rubin Ritter said in a statement: “Our clear customer focus has paid off in the first quarter, as we made further headway to build the starting point for fashion in Europe.”

Review of Zalando’s first quarter results

Zalando further said that the company will strengthen this positive development by deepening customer relationships with Zalando Plus, which is available for all Zalando customers in Germany. A pilot project is live in Switzerland, with France and Italy to follow within the next twelve months.

The company added that the strong growth of Zalando’s partner program was driven by brands intensifying their usage as well as by new partners joining the program, such as Calzedonia, Intimissimi or Margarete Steiff. In the first quarter, about 30 percent of all partner program orders were fulfilled through Zalando Fulfillment Solutions (ZFS).

Zalando has confirmed its full-year guidance of GMV growth between 20 percent and 25 percent, revenue growth at the low end of this range, an adjusted EBIT between 175 million euros and 225 million euros and capital expenditure of around 300 million euros.

Picture:Zalando newsroom