Thursday, February 25, 2021

Zalando sticks to ideals through unprofitable quarter

German fashion etailer Zalando saw its net loss widen this quarter, despite some impressive revenue growth.

In the period from July to September the company, which originated in a flat in Berlin, saw its net loss widen to €28.5m, following a loss of €0.5m the previous year.

Conversely, revenue rose by 42%, reaching €713.1m, driven partly by an increased product range, which now features Calvin Klein. Before interest and taxes, Zalando‘s overall earnings dropped by 3.9%.

Zalando remains Europe‘s largest online fashion retailer. Last month it cut its 2015 profit margin target, citing business development as the reason. The company is continuing with an ongoing scheme of tech hiring and development as it strives to stay on top online.

It recently launched ‘My Returns‘, a service which will allow customers to return items within 24 hours of delivery. Customer satisfaction reportedly reached an “all time high” during the quarter according to the results, and in a recent interview with Retail Gazette Senior Vice President of Operations at Zalando Robert David Schröder called “customer centricity” the company‘s “key priority.”

“Our accelerated growth is driven by very strong customer metrics, so we are clearly making the right investments,” said Rubin Ritter, Co-CEO of Zalando. “We are confident that we will deliver a unique combination of fast growth and clear profitability for the full year, which is also the right path for us going forward.”


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