Zalando revenues increase by 3%

Zalando has posted a 2.9% increase in revenue to £2 billion for its third quarter of 2022.

Gross merchandise volume (GMV) climbed to £2.84 billion, meanwhile adjusted EBITDA increased to £11.6 million from £8.4 million in the same quarter year-on-year.

The number of active customers increased by 8% compared with 2021, reaching above 50 million for the first time.

Zalando’s loyalty program, Zalando Plus, watched its membership almost tripled over the course of the quarter.

The proportion of partner businesses contributing to fashion store gross merchandising value increased by 7% when compared with the same quarter last year.

The retailer said it remained “laser-focused” on protecting profitability during the course of Q3.

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A new minimum order value encouraged customers to increase the size of their basket or pay the delivery fee. As a result, orders below the minimum order value are now profitable.

Costs were reduced by almost £100m so far this year, helping to drive efficiency improvements across its European logistics network. This involved managing excess inventory.

Zalando has confirmed its guidance provided on 23 June for the year. It outlined revenue growth between 0-3% to £9-9.2 billion (€10.4-10.7 billion), with an adjusted EBITDA of £155-225 million (€180-260 million).

The retailer said it now expects to reach the lower end of these ranges.

“I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them,” Zalando co-CEO Robert Gentz said.

“We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”



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