Zalando‘s net profit rose to €122.6 million in the second quarter from €45.5 million a year earlier as its client base expanded in terms of final customers as well as participants in its marketplace. The German online fashion retailer now serves 34.1 million active customers across Europe, up by 20.4 percent year-on-year.

Gross merchandise volume (GMV) increased by 33.0 percent to €2.69 billion as the group benefited from the Covid-19 related lockdowns and increased activity on its internet marketplace. The number of orders rose by 28.6 percent to 46.5 million, but the average basket size remained stable, rising by only 0.3 percent to €56.9. Average orders per active customer rose slightly to 4.7 from 4.6 a year earlier.

Second-quarter revenues jumped by 27.4 percent to €2.03 billion, of which €1.87 billion was achieved through the company’s so-called fashion store and €252.2 million from off-price sales.

For the whole first half of the year, GMV was up by 25.1 percent to €4.72 billion and revenues rose by 19.6 percent to €3.56 billion

The Berlin-based e-tailer saw a significant improvement in adjusted Ebit during the second quarter, rising to €211.9 million from €101.7 million a year earlier, with the margin widening to 10.4 percent from 6.4 percent. For the whole semester, the adjusted Ebit was only €113.3 million, up from €108.1 million the previous year, resulting in a margin of 3.2 percent, down from 3.6 percent.

Zalando plans to “double down on its platform transition in the second half of the year.” Key initiatives include the acceleration of the partner program, as well as the Connected Retail program. Thanks to the latter, the partners on its marketplace can take orders from Zalando customers themselves and ship the goods directly from their physical stores.

In the second quarter, around 180 new brands and retailers signed to the partner program. As a result, partner-program GMV grew by over 100 percent as compared to the same period last year. The volume of items shipped through Zalando Fulfillment Solutions grew by 180 percent, as partners sought to reach consumers across Europe as an answer to the accelerated shift towars online retailing.

For the full year, the company expects GMV growth of 20-25 percent and an increase in revenues of 15-20 percent, an adjusted Ebit of €250 million-€300 million. It has budgeted investments of between €230 million and €280 million.