Zalando Reports Standout First Quarter Results and Raises Full Year Outlook

• Zalando expects 31-36% GMV growth and 400-475 million euros adjusted EBIT for financial year 2021
• GMV grew 55.6% to 3.2 billion euros in first quarter, at adjusted EBIT margin of 4.2%
• Exceptional new customer growth, reaching 41.8 million active customers
• Zalando to expand European logistics network with five fulfillment centers by 2023

BERLIN, MAY 6, 2021 // Zalando upgrades its outlook for the financial year 2021 following exceptionally strong and profitable growth in the first quarter, continued elevated growth levels in the second quarter, and a stable outlook for the second half of the year. 

The company now expects Gross Merchandise Volume (GMV) to grow 31-36% to 14.0-14.6 billion euros for the financial year 2021. The company expects revenues to grow 26-31% to 10.1-10.5 billion euros and an adjusted EBIT of 400-475 million euros in the same period. Zalando previously assumed GMV growth of 27-32%, revenue growth of 24-29% and an adjusted EBIT of 350-425 million euros for the full year 2021.

Fueled by exceptional new customer growth and high engagement of existing customers, Zalando achieved its strongest customer growth since 2013, reaching 41.8 million active customers at the end of the first quarter. 

Topline growth came in at an exceptionally high rate, with GMV growing by 55.6% to almost 3.2 billion euros and revenues growing 46.8% year-on-year to 2.2 billion euros. Growth was fueled by a continued rise in consumer demand for online offerings and an outstanding growth in our partner business. In addition to a very strong growth momentum, Zalando achieved a positive adjusted EBIT of 93.3 million euros or margin of 4.2%, which was mainly driven by a strong sell-through and a continued lower return rate.

Chief Financial Officer David Schröder says: “In the first quarter of 2021, Zalando delivered the strongest growth ever since going public in 2014. We see our platform business unfolding at increasing speed, creating benefits for customers and partners alike and allowing us to make fast strides on our journey towards being the Starting Point for Fashion.”

To enable Zalando’s future growth ambitions and serve customers with best-in-class convenience, Zalando will continue to expand its European logistics network of currently 10 fulfillment centers and add five fulfillment centers to the existing network by 2023. Two centers in Rotterdam and Madrid are close to completion and will go live in 2021. Construction works on three new fulfillment centers in France, Germany, and Poland will kick off in the next twelve months.

The first quarter report, as well as the earnings presentation for analysts and investors, is available on the Zalando Investor Relations website. Zalando will report the results for the second quarter of 2021 on August 5, 2021.

Definitions are available in the Q1 and annual report