Zalando’s stocks jumped nearly 11 per cent today after it released predictions for healthy double-digit growth for the full year 2020.
The online fashion retailer revealed that it expects to see gross merchandise volumes rise between 10 and 20 per cent this year despite the coronavirus crisis.
Despite an initial drop in sales in March, demand reportedly recovered in April seeing a 39 per cent growth in new customers, up from 17 per cent growth in Q1.
This ecnouraged it to predict that it will be “clearly profitable” in 2020 with adjusted operating profit coming in at between €100 million (£87.27 million) and €200 million (£174.54 million).
In March when the lockdown was largely enforced across the EU, Zalando made an operating loss of €98.6 million (£86.6 million), including a €40 million (£34.9 million) writedown as a result of revised current season sales.
Zalando is the first major online fashion retailer to offer investors full year guidance, as many rivals have opted to wait until the future implications of the pandemic are more clear.
“We are confident that we will grow double-digit and at a clear profit in 2020,” Zalando’s co-chief executive Rubin Ritter said.
“This will allow our partners to grow and gain market share in a challenging economic environment by building their business on Zalando.
“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.”