Online fashion giant Zalando has confirmed its full-year guidance for 2024 after delivering growth and “improved” profitability during the first quarter.
Zalando reported an increase in adjusted EBIT to €28.3m (£24.28m) in its first quarter, while gross merchandise volume was also up 1.3% to €3.3bn (£2.83bn).
Revenue during the quarter reached a total of €2.2bn (£1.89bn), down slightly from €2.3bn (£1.97bn) during the same period last year.
Zalando said its “substantial improvement in profitability” came as a result of lower fulfilment costs and improved inventory management.
While active customers at the retail giant dropped from 51.2 million in the first quarter last year to 49.5 million and the number of orders also dipped from 56.7 million to 55.2 million, the average basket size was up from €57.30 (£49.16) to €60.40 (£51.82).
In terms of outlook, Zalando has confirmed its full-year guidance and said it expects revenue and gross merchandise volume to rise between 0% and 5% on last year, and it will prioritise profitable growth and adjusted EBIT is expected to fall between €380m (£326m) and €450m (£386m).
Zalando chief financial officer Sandra Dembeck said: “As we are executing our ecosystem strategy, we are excited by the positive response from customers and partners in the first quarter. We are returning to growth.
“B2C customers are showing increased interest in our quality assortment, digital tools, propositions and inspiring content. B2B customers are signing up for our unique offering.
“Both of our growth vectors are strong and contributing to results, demonstrating the strength of our plans.”
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