Zalando sees customer growth in FY22 despite fall in revenues
Zalando, one of Europe’s leading online fashion retailers, has reported a 6% increase in active customers in 2022, growing to over 51 million customers despite the "challenges of 2022".
In the financial year, Zalando saw annual revenue fell by 0.1% to £9.18 billion (€10.34 billion), narrowly missing analysts' estimates of £9.20 billion (€10.36 billion).
Other key financial figures all came within the ranges of its updated company guidance despite facing a "challenging economic backdrop". GMV grew by 3% to £13.14 billion (€14.8 billion). Adjusted earnings before interest and taxes (adjusted EBIT) stood at £163.87 million (€184.6 million).
Zalando’s loyalty program more than doubled its membership to over 2 million compared to the year prior.
Robert Gentz, Co-CEO at Zalando, commented: "The fact that we were able to continue to grow our customer base in the current economic environment shows that our core strategy is working.
“We want our customers to love Zalando and that’s why we are deepening our relationships with them. Understanding their needs and likes is crucial. Then they’ll keep coming back to us and stay longer with us."
Sandra Dembeck, CFO at Zalando, added: "The challenges of 2022 demanded us to be laser-focused on profitable growth and we acted quickly and decisively with measures that improved margins such as the introduction of minimum order values.
"Our healthy balance sheet allows us to continue investing in our strategic priorities whether that’s driving customer excitement around relevant brands and assortment or helping partners to drive their direct-to-consumer business across a variety of channels."
To continue growing its customer base, the company is planning to improve its curation of products with the help of Highsnobiety, which it acquired in June 2022. Zalando has already introduced more than 80 curated product drops since the start of the collaboration, which reportedly attracted 7 million unique users.