Zalando sales up in Q3

Zalando has reported a 2.9% increase in revenue to £2 billion (€2.3 billion) for the third quarter of 2022.

Gross merchandise volume grew 7.1% to £2.84 billion (€3.28 billion). Adjusted EBIT increased to £11.6 million (€13.5 million) from £8.4 million (€9.8 million) in the same quarter a year ago.

The number of active customers increased by 8% compared with 2021, exceeding 50 million for the first time. In addition, Zalando’s 'Plus' loyalty program almost tripled its membership.

Brand partners and stores continued to grow their business at Zalando. The proportion of partner businesses contributing to fashion store gross merchandising value increased by seven percentage points, compared with the same quarter last year.

Zalando remained "laser-focused" on protecting profitability in Q3. The introduction of a minimum order value encouraged customers to increase the size of their basket or pay the delivery fee. As a result, orders below the minimum order value are now profitable.

The fashion retailer captured further marketing efficiencies, reducing costs by almost 100 million so far this year. It also drove efficiency improvements across its European logistics network, including managing excess inventory.

Looking ahead, Zalando has confirmed its guidance provided on 23 June for FY22. The retailer outlined revenue growth between 0-3% to £9-9.2 billion (€10.4-10.7 billion), with an adjusted EBIT of £155-225 million (€180-260 million). It now expects to reach the lower end of these ranges.

Robert Gentz, Co-CEO at Zalando, said: “I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them. We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”