📈 Profit surge and outlook upgrade
Zalando has significantly raised its 2024 profit forecast. The German e-commerce giant's adjusted EBIT soared from $23M to $95M in Q3, fueled by strong demand. Sales jumped 5% to $2.4B, and its gross merchandise volume (GMV) grew 7.8%, reaching $3.5B. The company now expects full-year adjusted EBIT between $448M and $491M, higher than the previous forecast of $388M to $460M. These results reflect increased consumer demand and a successful fall/winter season launch.
🛍️ Growing customer base
Zalando's active customer count rose to over 50M during the quarter, as its new ecosystem strategy continues to pay dividends. The company has focused on expanding its reach by enhancing the customer experience with features like more personalized fashion discovery. "Consumer demand has increased across the industry in the third quarter," said co-CEO Robert Gentz, noting a particularly strong fall/winter season compared to last year.
🌐 Ecosystem strategy drives growth
The key to Zalando’s success has been its ecosystem strategy, which focuses on quality, lifestyle expansion, and B2B capabilities. This approach helped Zalando capture more demand across its platform, with Gentz emphasizing, "Our new ecosystem strategy... positions us very well to capture growth opportunities." The strategy also includes investments in logistics and customer loyalty programs, aiming to keep customers engaged and coming back to the platform.
📦 Focus on strategic investments
Looking ahead, Zalando is doubling down on key investments. The company is expanding its European logistics network and building stronger customer loyalty through more personalized and engaging fashion discovery. Gentz highlighted the importance of these initiatives, which are designed to reinforce Zalando’s dominant position in the European fashion market. As Zalando’s strategy continues to evolve, the company expects to maintain strong growth into the next quarter and beyond.
Will Zalando’s ecosystem strategy keep profits soaring?
