// Zalando’s growth outlook is significantly above the overall fashion market
// Despite the ongoing Covid-19 outbreak, Zalando aims to grow its GMV by 10-20%
Zalando is anticipating double-digit growth in 2020 despite the challenging trading environment due to the ongoing coronavirus outbreak.
The retailer aims to grow its gross merchandise volume by 10-20 per cent and its revenue in the same range.
The company expects to be clearly profitable with an adjusted EBIT between €100 million (£87m) and €200 million (£174m) and plans investments between $230 million (£197m) and $280 million (£240m).
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“We are confident that we will grow double-digit and at a clear profit in 2020. This will allow our partners to grow and gain market share in a challenging economic environment by building their business on Zalando,” Zalando co-chief executive Rubin Ritter said.
Many of them have significantly increased their activities on our platform in the past weeks, and we will continue to make it easier for them to reach customers across Europe.”
The retailer stated that its growth will be driven by the accelerated consumer shift from offline to online.
In the first quarter of 2020, Zalando grew its gross merchandise volume by 13.9 per cent to $2bn (£1.7bn) and its revenue by 10.6 per cent to $1.5bn (£1.3bn).
Due to lower customer demand in March following lockdown measures Zalando recorded an adjusted EBIT of minus $98.6m (£85.9m) and an exceptional inventory write-down of $40m (£34m) as a result of the revised sales expectations for the current season.