Zalando books record orders in second quarter

Zalando update
// Zalando saw active customers jump by 15.2% to 28.3 million, and site visits went up 34.3% to 986.4 million
// Revenues surge 20.1% to €1.6 billion (£1.45 billion) while adjusted EBIT came in at €101.7 million (£92.68 million)
// Berlin-based online raises profit outlook after its “strongest-ever second-quarter active customer growth”

Zalando’s customer base has grown to record highs, allowing the online fashion retailer to book record orders for the second quarter and raise its profit outlook.

The Berlin-based retailer said active customer numbers now stands at 28.3 million – 3.7 million more than what was recorded during the same period last year – across its 17 markets in Europe.

Meanwhile, Zalando said site visits surged 34.3 per cent to 986.4 million, 84 per cent of which came through mobile devices, resulting in 36.1 million orders – a record for the company.

For the second quarter, Zalando record a 20.1 per cent uptick in revenues to €1.6 billion (£1.45 billion), while adjusted EBIT came in at €101.7 million (£92.68 million).

Meanwhile, gross merchandise volume (GMV) grew  23.7% to €2 billion (£1.82 billion).

Zalando also increased its network of bricks-and-mortar retailers partnered with its platform to more than 1300.

The positive results of both the first and second quarter prompted Zalando to raises its profitability outlook to the upper half of the adjusted EBIT range of €175 million to €225 million.

“More customers than ever before have chosen Zalando as their starting point for fashion,” Zalando chief financial officer David Schroder said.

“This proves that our continuous efforts to deliver a best in class fashion experience pay off.

“Our platform transition continues to accelerate. The growth of our partner program leads to a more attractive and diverse assortment for our customers.

“We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy.”

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