Zalando quadruples its profit to 56.6 million

Zalando multiplies by four it net profit in the second quarter of the following year Profit 56.6 million euros, compared to 14 million in the same period last year. Between April and June, the company registered one ebit closely (earnings before interest and taxes) of 144.8 million euros, 87% more than a year ago. As the company announced in a statement, the solid business development is taking place in the midst of a Commitment to strategic initiatives The aim is to drive growth, attract and retain customers’ attention and expand the company’s logistics offering.

On his side, he Gross Merchandise Volume (GMV) decreased by 1.8% to 3,718 million euros, while sales decreased by 2.5% to 2,556 million euros compared to 2,623 million in the same period in 2022.

During the last 12 months the number of active Zalando customers grew to 50.5 million compared to 49.3 million last year the average purchase price increased from 55.9 to 58.1 euros.

«In a temporarily difficult retail environment, we continue to drive sustainable efficiencies in order fulfillment and marketing“, has explained Sandra Dembeck, CFO of Zalandoassures that “These efforts have paid off this year: Adjusted EBIT almost doubled in the second quarter“. “This success puts us in a prime position to focus more on investments and future growth initiatives.“, he added.

Zalando has increased its forecast for the full year forecasts an adjusted EBIT of between 300 and 350 million euros. The company had previously expected between 280 and 350 million. In terms of sales, the company forecasts a decline of up to 1% and growth of up to 4%, while GMV expects increases of 1% and 7%, respectively.

New brands and size recommendations, powered by AI

Parallel to, Zalando has stated that the new sports and beauty brand partnerships have strengthened the company’s brand portfolio and the “enthusiasm» of customers in the quarter. «lululemonwhich offers innovative clothing and accessories for yoga, running, training and most other sporting activities has also started on Zalando HOKA, an innovative, high-performing running apparel brand. In the beauty sector, Zalando has deepened important brand relationships, for example with luxury brands such as Lancome, Mugler And Shiseidowhich they now offer in more markets‘ they stressed.

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In addition, Zalando launched one last July new artificial intelligence tool This allows customers in Germany, Austria and Switzerland to receive size recommendations for selected items of clothing based on their body measurements. «We invest in areas like storytelling and technology that will drive future growth“, hinted Robert Gentz, Co-CEO of Zalandowith the statement: “New brands like Lululemon and Lancôme will delight our customers and help make Zalando even more of a travel destination of choice, and our new size and fit tool will make the shopping experience even better.” In the words of Gentz, “this new tool is an industry breakthrough solution that helps customers find the perfect fit before delivery. This is really exciting because it shows how one of the biggest challenges in fashion e-commerce can be solved at scale.«.

“In the second quarter of 2023 We have continued to pursue our goal of continuously improving the user experienceWe offer our Spanish clients the most relevant and exciting brands. Direct engagement with our Spanish audience was another focus of our attention, with the “Verbena” summer activation forming the central axis. A series of events focused on fashion and music, celebrating the local popular culture of the summer season with activities that have taken place in Catalonia, Andalusia and Asturias. Finally, We keep working to be the starting point of fashion offers a unique online shopping experience with the launch of a new tool that allows customers to get size recommendations based on their actual body measurements»has commented on his site Riccardo Vola, General Manager of Zalando for Spain and Italy.

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