German pureplay giant Zalando has upgraded its outlook for the 2021 financial year following what it called a “standout” first quarter.

The Berlin-based retailer said it had delivered its strongest quarter of growth since before it went public, with revenues soaring 46.8% to €2.2bn (£1.9bn), while profits jumped 4.2% to €93.3m (£80.7bn) for the period. 

Zalando said active customers on its platform hit 41.8 million at the end of the period, which drove gross merchandise values up 55.6% to €3.2bn (£2.7bn).  

As a result of the first-quarter performance and a strong start to quarter two, Zalando said it now expected sales on its platform to grow between 26% and 31% to €10.1bn (£8.7bn) to €10.5bn (£9.1bn) and profits to come in between €400m (£346m) and €470m (£406m) for the 2021 financial year. 

Chief financial officer David Schröder said: “In the first quarter of 2021, Zalando delivered the strongest growth ever since going public in 2014.

“We see our platform business unfolding at increasing speed, creating benefits for customers and partners alike, and allowing us to make fast strides on our journey towards being the ‘starting point for fashion’.”

Zalando said that, in order to capitalise on its momentum, it would continue to expand its network of European fulfilment centres, adding a further five by the end of 2023.

Topics

Related Companies