Zalando Reports Outstanding Customer Growth in Second Quarter of 2019

 

  • Strongest ever Q2 active customer growth, fastest site visit growth since 2013

  • Profitable growth continued: GMV up 23.7% to EUR 2.0 billion, adjusted EBIT of EUR 102 million

  • Zalando raises profit outlook to the upper half of the EUR 175-225 million adjusted EBIT range

  • GMV growth expected in the 20-25% range, revenue growth around the lower end of the range

 

BERLIN, AUGUST 1, 2019 // Zalando SE has successfully grown its business in the second quarter of 2019. The number of active customers grew significantly by 3.7 million (15.2%) year-over-year to 28.3 million across Zalando’s 17 European markets. In the same period, site visits went up 34.3% to 986.4 million, 84% of which came through mobile devices, resulting in a record number of orders (36.1 million).

 

Chief Financial Officer David Schröder says: “More customers than ever before have chosen Zalando as their starting point for fashion. This proves that our continuous efforts to deliver a best in class fashion experience pay off.”

 

Several new initiatives to excel the customer experience are already underway: The company will start building a new warehouse in the Netherlands this summer to better serve customers across its Western European markets and ready the company’s logistics capacities for future growth. In Germany, Zalando has doubled the number of parcels delivered on the same or next day compared to the first quarter and in Switzerland, it is currently testing same-day evening delivery in the Zurich region. 

 

Zalando continues to broaden its assortment by investing in sustainable fashion and premium assortment, by extending its Partner Program and by expanding its cooperations with offline retailers. To date, more than 1,300 offline stores are connected to the Zalando platform.

 

In the second quarter of 2019, Zalando has continued to gain market share. Gross Merchandise Volume (GMV) grew by 23.7% to EUR 2.0 billion; revenues increased by 20.1% to EUR 1.6 billion. In the same period, Zalando achieved an adjusted EBIT of EUR 101.7 million or a margin of 6.4%.

 

“Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy,” says David Schröder. 

 

Following a strong first half of 2019, Zalando raises its profitability outlook to the upper half of the adjusted EBIT range of EUR 175-225 million (previously: in the EUR 175-225 million range). The company confirms its full-year guidance of GMV growth of 20% to 25% and now expects revenue growth around the low end (previously: at the low end) of this range. Zalando confirms its expected capital expenditure of around EUR 300 million.

 

The earnings presentation for analysts and investors is available on the Zalando Investor Relations website. Zalando will report the results for the third quarter of 2019 on October 31, 2019.

Zalando Group – Key Figures (in EUR million)

 

 

Q2 2019

Q2 2018

Group revenue

1,597.3

1,330.0

% growth

20.1%

20.9%

Fashion Store

1,478.1

1,233.4

    Thereof DACH

732.0

625.8

    Thereof Rest of Europe

746.1

607.6

Offprice

155.7 

114.6

Other

45.2

100.8

Reconciliation

-81.7

-118.7

Adjusted group EBIT

101.7

94.0

Adjusted group EBIT margin

6.4%

7.1%

Fashion Store

103.6

92.2

    Thereof DACH

67.5

60.0

    Thereof Rest of Europe

36.1

32.2

Offprice

6.9

7.5

Other

-8.9

-7.5

Reconciliation

0.1

1.7

Net working capital

-78.6

16.1

Capital expenditure

-55.1

-67.0

Net income

45.5

51.8

 

Zalando Group – Key Performance Indicators

 

 

Q2 2019

Q2 2018

Change

Site visits (million)

986.4

734.3

34.3%

Mobile visit share (% of site visits)

83.5

78.4

5.2pp

Active customers (million)

28.3

24.6

15.2%

Number of orders (million)

36.1

29.0

24.7%

Average orders per active customer

4.6

4.2

9.2%

Average basket size (LTM, EUR)

56.9

58.4

-2.6%

Average basket size (quarter, EUR)

56.4

56.8

-0.8%

Group GMV (billion EUR)

2.0

1.6

23.7%

Definitions are available in the half-year report and annual report.

Boiler Plate - Q2 2019 - EN

About Zalando

Zalando is Europe’s leading online platform for fashion and lifestyle. Founded in Berlin in 2008, we bring head-to-toe fashion to more than 28 million active customers in 17 markets, offering clothing, footwear, accessories and beauty. The assortment of international brands ranges from world famous names to local labels. Our platform is a one-stop fashion destination for inspiration, innovation and interaction. As Europe’s most fashionable tech company, we work hard to find digital solutions for every aspect of the fashion journey: for our customers, partners and every valuable player in the Zalando story. Our goal is to become the starting point for fashion.

Media Inquiries


Linda Hübner
Corporate Communications
Linda.Huebner@zalando.de
+49 (0)152 21817372

Investor/Analyst Inquiries


Patrick Kofler
Investor Relations
Patrick.Kofler@zalando.de
+49 (0)30 20968 1584