Zalando revenue tops £5bn as it prepares second-hand launch

785
Zalando trading update
Zalando will launch a pre-owned offering on its site this autumn
// Zalando revenue for full-year reaches £5.5bn
// The retailer gained an additional 4.6m users over the period
// It achieved ”record-breaking results during Cyber Week”

Zalando has seen its full-year sales and profits increase amid preparations to launch a second-hand range.

The online retailer’s revenue grew 20.3 per cent to €6.5 billion (£5.5 billion) for the 2019 financial year, after gaining 4.6 million more active customers.

Gross merchandise volume rose 23.6 per cent to €8.2 billion (£6.9 billion), while adjusted EBIT rose to €224.9 million (£189.9 million) from €173.4 million (£146.4 million) in 2018.


READ MORE: Zalando partners with Global Fashion Agenda


Meanwhile, Zalando’s growth during the fourth quarter was ”especially pronounced” when it achieved ”record-breaking” results during Cyber Week.

The German retailer said it would launch a pre-owned offering on its site this autumn in a bid to become “the starting point for fashion”.

”Starting in the third quarter of 2020, customers will be able to buy curated pre-owned fashion, as well as sell their pre-owned fashion items to Zalando,” the retailer said.

”The category launch supports Zalando’s ambition to build deep customer relationships by creating even more customer touchpoints, and brings the company closer to the goal to become a sustainable fashion platform.”

In 2019, Zalando took 145 million orders, received more than four billion site visits and customer numbers rose to 31 million from 26.4 million the previous year.

Zalando chief financial officer David Schröder said: “We achieved strong financial results in every single quarter.

“While delivering those results, we have made strong progress on our strategic agenda.”

In addition, Zalando said it would extend its European logistics network by opening a local warehouse in Spain.

With this warehouse, Zalando will “significantly improve its convenience offering and thereby unlock future customer growth”.

In line with its growth strategy for 2023/24, Zalando expects to grow its gross merchandise value between 20 per cent and 25 per cent and it expects revenues to grow between 15 per cent and 20 per cent in 2020.

The retailer expects continued profitable growth and an adjusted EBIT between €225 million (£187 million) and €275 million (£228 million), as well as capital expenditure of around €330 million (£274 million).

Zalando said these expectations excluded a potential negative impact caused by the coronavirus outbreak.

Click here to sign up to Retail Gazette‘s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here