Zalando is performing better than expected. It is now projecting an adjusted operating profit (Ebit) of between €375 million and €425 million for the full 2020 financial year on an increase in total revenues of between 20 and 22 percent. As usual, the growth will be driven by an increase in its platform business, which will lead the gross merchandise volume (GMV) to go up by between 25 and 27 percent for the year. Preliminary data for the third quarter indicate an increase in GMV of 28 to 31 percent, taking it up to a level of €2.43-2.48 million for the period. The quarterly Ebit probably jumped to €100-130 million, compared with €6.3 million a year ago, as revenues rose by 20-23 percent to a range of €1.83-1.87 billion. Evidently, customers have been shopping more online after the first wave of the pandemic. Zalando is also benefiting from a continued reduction in product returns. The spike in the e-tailer’s profitability was also due to a reversal of an exceptional writedown in inventories taken in March, prior to an unexpectedly “fast and sustained” recovery in consumer demand.