- Prachi Singh |
Zalando SE said that the company achieved profitable growth in the third quarter of 2020. The company’s gross merchandise volume (GMV) and revenue grew by 29.9 percent and 21.6 percent to 2.5 billion and 1.8 billion euros, respectively, driven by the accelerated consumer demand shift towards digital offerings in the course of the ongoing coronavirus pandemic, as well as the strong performance of Zalando’s Partner Program and Zalando Lounge. In the same period Zalando achieved an adjusted EBIT of 118.2 million euros or a margin of 6.4 percent.
Commenting on the third quarter performance, David Schröder, Zalando’s Chief Financial Officer, said: “As the second coronavirus wave is starting more forcefully than anticipated, we are much better prepared than earlier in the year. Our starting point for fashion strategy continues to enable us to turn the accelerated consumer demand shift towards digital offerings into business opportunities for Zalando and its partners.”
As a result of its strong financial performance, Zalando raised its outlook for the 2020 financial year on October 8, 2020. The company now expects GMV to grow 25-27 percent, revenues to grow 20-22 percent and an adjusted EBIT of 375-425 million euros. In its outlook published on July 15, 2020, Zalando previously assumed GMV growth of 20-25 percent, revenue growth of 15-20 percent and adjusted EBIT of 250-300 million euros for the full year.