Zalando ups full year guidance as it looks ahead to capturing growth opportunities
Zalando has upgraded its full-year financial outlook after strong consumer demand in its third quarter.
According to preliminary figures, third quarter gross merchandise value climbed by 7.8% year-on-year in the quarter to €3.5 billion while revenue increased by 5% to €2.4 billion.
Meanwhile, adjusted EBIT grew from €23 million to €93 million,
Robert Gentz, Zalando co-chief executive. said: “Consumer demand has increased across the industry in the third quarter, with a strong start to the fall/winter season, compared to last year’s slow beginning.
“Our new ecosystem strategy, empowering us to cover a larger share of the fashion and lifestyle ecommerce market, positions us very well to capture growth opportunities.”
The company is currently investing in a number of major strategic initiatives, including driving customer loyalty and strengthening its European logistics network.
It is now predicting that its full year gross merchandise volume will be up by between 3% and 5%, compared with the previous growth outlook of 0% to 5%.
Furthermore, revenues are now expected to increase by between 2% and 5%, which is up from the previous guided range of 0% to 5%.
Meanwhile, adjusted EBIT is now expected to come in at between €440 million and €480 million compared to a prior range of €380 million and €450 million.
