Zalando delivered sales growth and improved profitability in the first quarter, despite a continued challenging economic environment with high inflation. The positive performance was helped by rising demand at Lounge by Zalando, its online shopping club, and partners selling more fashion and beauty products on the company’s platform.
The online retailer’s gross merchandise volume (GMV) rose 2.8 percent to €3.24 billion and revenues increased 2.3 percent to €2.26 billion in the first quarter compared with a year ago. The number of active customers grew by 4.8 percent to 51.2 million. Group revenues increased 2.3 percent to €2.26 billion. Net loss was €38.5 million compared to €61.3 million a year ago.
Lounge by Zalando contributed to growth
Lounge by Zalando, which offers customers limited-time offers and discounts on premium brands, and is a major component of the Offprice segment, contributed to a 33 percent increase in revenues at Offprice. In addition, “curated product drops with brands such as Adidas and Salomon or teaming up with designer brands to create capsule collections led to increased engagement with our customers,” said the company’s co-CEO Robert Gentz.
The Berlin-based e-tailer has confirmed its full-year guidance for 2023. GMV is expected to grow between 1 percent and 7 percent while revenues are expected to develop in the range of -1 to 4 percent compared with last year. The company expects adjusted EBIT to be between €280 million and €350 million this year. Zalando will report the results for Q2 on Aug. 3, 2023.
