Zalando has upgraded its outlook for the year as strong consumer demand sent its third quarter sales and profitability soaring.
The online retailer’s adjusted EBIT skyrocketed from £19 to £78m (€93m), with strong demand driving its number of active customers to over 50m.
Sales rose 5% to £2.01bn (€2.4bn) and gross merchandise volume increased 7.8% to £2.93bn (€3.5bn).
The German fashion giant said its “ecosystem strategy around quality, lifestyle expansion, inspiration and opening up its B2B capabilities” had allowed it to capture more consumer demand during the period, amid an “industry-wide strong start to the fall/winter season”.
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Zalando now expects adjusted EBIT for its full-year 2024 to come in between £367m and £402m, compared to its previous forecast of between £318m and £377m.
The retailer’s co-CEO Robert Gentz said: “Consumer demand has increased across the industry in the third quarter, with a strong start to the fall/winter season, compared to last year’s slow beginning.
“Our new ecosystem strategy, empowering us to cover a larger share of the fashion and lifestyle e-commerce market, positions us very well to capture growth opportunities.”
Looking ahead, the executive said the company was doubling down on its investments in key strategic initiatives, including “driving customer loyalty, making fashion discovery more inspiring and entertaining, and further strengthening its European logistics network, in line with its updated ecosystem strategy“.
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