Zalando raises full year outlook
Zalando has upgraded its outlook for its 2021 financial year after strong growth in its first quarter continued into the second.
The online fashion retailer had previously said that it expected revenue to rise by between 24% and 29% and adjusted EBIT to come in at between £350 to £425 million. However, it has now raised its guidance for revenue growth to between 26% and 31% and predicts that adjusted EBIT will be between €400 million and €475 million. The outlook for general merchandise volume has also been raised from growth of between 27% and 32% to 31% and 36%.
Giving details of first quarter trading, Zalando said it achieved its strongest customer growth level since 2013 and reached 41.8 million active customers by the end of the period.
Gross merchandise value climbed by 55.6% to almost €3.2 billion in the quarter as revenue increased by 46.8% to €2.2 billion. The uplift was driven by a continued rise in consumer demand for online shopping, as well as growth in Zalando’s partner business. The company also achieved a positive adjusted EBIT of €93.3 million, or margin of 4.2%, which was mainly driven by a strong sell-through and a continued lower return rate.
Zalando 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 it will continue to expand its European logistics network by adding new five fulfilment centres to its network by 2023. Two centres in Rotterdam and Madrid are close to completion and will go live in 2021 while construction on centres in France, Germany, and Poland will begin in the next twelve months.
