Zalando's Q3 results showed strong gains. Revenue rose by 5% to $2.5B, while GMV climbed 7.8% to $3.8B. B2C sales grew 4.3%, reaching $2.4B, and B2B saw an 11.1% increase. Net profit hit $47M, reversing last year's loss. Zalando confirmed its 2024 outlook, projecting 3-5% GMV growth and adjusted EBIT of $470M. Investments in new brands, logistics in Europe, and the Zalando Assistant help drive engagement and expansion.
Zalando's Q3 saw significant financial gains, with revenue up by 5% to $2.5B and GMV increasing by 7.8% to $3.8B. This growth is attributed to higher consumer demand and a strong fall/winter season kickoff. Zalando also added half a million active customers, now totaling 50.3 million. Chief Financial Officer Dr. Sandra Dembeck noted that Zalando’s mix of new brands and digital content has been central to these positive results.
Zalando strengthened its B2C sector by adding new quality brands and removing the fee from its “Plus” loyalty program, shifting to a points-based system to boost customer retention. The company expanded its logistics network near Paris, improving service for France and neighboring areas. In B2C, sales climbed 4.3% to $2.4B, and adjusted EBIT reached $91M, driven by efficient logistics and enhanced gross margins.
Zalando’s B2B growth reached 11.1% in sales, totaling $252M. Investments in ZEOS allowed partner brands like ASOS to use its platform, now processing orders from nine major e-commerce sites. However, adjusted EBIT in B2B dropped to $7M, largely due to early investments for long-term growth. Zalando’s platform expansion aims to bring more brands into its ecosystem, enhancing its support for their sales both on and off Zalando.
Zalando reaffirmed its 2024 targets, anticipating GMV growth of 3-5% and revenue growth of 2-5%. Adjusted EBIT is expected to range between $470M and $510M. The company plans to expand its new tech center in China, develop localized logistics, and improve the customer experience with tools like Zalando Assistant, which provides personalized advice across all 25 markets. With these investments, Zalando aims to capitalize on growth opportunities in fashion and lifestyle.
Will Zalando’s investments lead to lasting growth?
Each week we select most important sector news and statistic
so that you can be up to speed