Zalando has reported year-on-year revenue growth of 23.1% to £6.9 billion (€8 billion) for the 12 months to 30 December 2020, driven by an intake of new customers and strong Partner Program performance.
Gross merchandise volume (GMV) also increased by 30.4% year on year to £9.22 billion (€10.7 billon), exceeding growth expectations.
Zalando now predicts it will continue to exceed previous expectations, with the company now expecting start gross merchandise volume growth of around 50% in the first quarter. It anticipates a 27-32% growth in GMV by in the financial year 2021.
Revenue is also expected to continue to grow in 2021, between 24-29%, totalling £8.87 billion (€10.3 billion). Revenues will trail GMV growth as a result of the ongoing platform transition at 24-29% growth or EUR 9.9-10.3 billion.
Zalando Co-CEO Robert Gentz said: “2020 has been a year like no other. We have kept our eyes on our long-term vision to be the Starting Point for Fashion. For the coming years, our focus remains on growth and investments for the long-term.”
Zalando confirmed it plans to invest between £301.5m-£344.5m (€350m-€400m) in technology and logistics infrastructure in the financial year, seeking to further capitalise on its progress made in the previous 12 month period.
In the financial year, Zalando saw a 28.0% increase on orders to 185.5 million (144.9 million in 2019), with active orders per active customer also increasing 2.4%, indicating that long-term customer loyalty has also increased.