Zalando's Q2 sales drop, expects recovery in H2
Zalando’s gross merchandise volume in the second quarter of 2022 came in at 3.8 billion euros, showing a flat development, amid a challenging macroeconomic environment due to lower consumer confidence, inflationary pressures and selected supply shortages impacting availability.
Zalando said, revenue fell by 4 percent to 2.6 billion euros mainly due to the transition of the business to a platform model. Zalando reported an adjusted EBIT of 77.4 million euros, resulting in a margin of 3 percent.
For the financial year 2022, the company continues to expect gross merchandise volume (GMV) to grow 3 to 7 percent to 14.8 to 15.3 billion euros. Revenue is expected to grow 0 to 3 percent to 10.4 to 10.7 billion euros with an adjusted EBIT of 180 to 260 million euros in the same period.
The company added that in the second quarter the number of active customers grew steadily to over 49 million, up 11 percent and the company’s loyalty program, Zalando Plus, grew 164 percent, with now over 1.5 million members.
Commenting on the results, Robert Gentz, Co-CEO at Zalando, said in a release: “We have demonstrated our agility as a team, showing that we can react quickly to adapt to the current environment while also making the experience of our customers even more inspiring and engaging.”
In the second quarter, Zalando’s beauty segment grew over 30 percent year over year.
Zalando launched its Plus membership program in Switzerland, and expanded to Romania and Hungary, increasing its footprint to 25 markets. Additionally, Zalando Lounge was launched in Romania, Slovakia and Lithuania. In June, the company acquired a majority stake in Highsnobiety, a fashion and lifestyle media company.
“We are focused on efficiency and margin improvement measures that will help us strengthen our profitability in the second half of the year,” added Dr. Sandra Dembeck, chief financial officer at Zalando.