David Schröder, Chief Financial Officer of Zalando, is pleased with the third quarter of 2019. His company has experienced significant growth and, for the first time, achieved over a billion page visits.

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According to Zalando, the online giant is getting closer to its goal of becoming the starting point for fashion. Whenever customers in Europe think of fashion, they should visit Zalando. More and more consumers are obviously doing this, as the company announced when it presented its quarterly results. For the first time in its history, the online platform for fashion and lifestyle recorded more than a billion page visits in one quarter. This is an increase of 37.3 percent over the previous year.

Chief Financial Officer David Schröder is satisfied: “The year has been very successful so far. We had a strong third quarter with many new active customers coming to us more and more often to be inspired. Our business is growing strongly in all regions. We want to take this momentum with us into the fourth quarter. We look forward to celebrating Cyber Week and Christmas with our customers.”

Above-average growth for Zalando in the Czech Republic

The figures in detail: Zalando now has 29.5 million active customers, 17.5 percent more than in the previous year. More customers also mean more orders. 34.7 million orders were placed with Zalando in the third quarter. This is an increase of 25 percent compared to 2018 and the reason for the sales growth. Sales rose by 26.7 percent to 1.5 billion euros.

It is interesting to take a look at the development in the various regions. Sales increased by 22.9 percent in the DACH region and by 30.8 percent in the other 14 markets. Growth was above average in Spain and the Scandinavian countries, as well as in the Czech Republic, where business has been growing very rapidly since its launch a year ago. Zalando will continue to invest in the market and expand into the Czech Republic with the Zalando Lounge in the fourth quarter.

A lot of turnover, but no profit

This growth is at the expense of profits. It is still more important for Zalando to become known and expand its market position than to make a profit. At 13.6 million euros, however, the loss was significantly lower than in the same period last year (41.7 million euros). As the number of customers increased, the size of the shopping basket declined. On average, consumers ordered 56.60 euros per order. A year ago it was 57.70 euros. Overall, Zalando has a positive outlook for 2019. The company expects a growth in gross merchandise volume of 20 to 25 percent and sales growth of around 20 percent. Furthermore, the Group plans to invest around 300 million euros in 2019. Zalando is also focusing on sustainability. Effective immediately, the company’s own business, shipping and return shipments will be climate-neutral. In addition, the product range has been expanded by three additional brands offering more sustainable products. The Zign private label is also to be fully geared to sustainability in 2020.

 

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Link: The online platform Zalando impresses with impressive sales and customer growth figures - but does not generate a profit in the third quarter.

Image: Zalando

//KH