Zalando posted group revenues of €2,733.1 million in the second quarter, up by 34 percent from the second quarter of 2020. The gross merchandise value (GMV) jumped by 40 percent to €3.8 billion. GMV is the value of all merchandise sold to customers after cancellations and returns and including VAT. It does not include B2B revenues (e.g. Partner Program commission, Zalando Marketing Services or Zalando Fulfillment Solutions) and other B2C revenues (e.g. delivery fees), which are included in revenues only.
The growth was supported by ongoing strong consumer demand for online offerings during extended lockdowns in markets throughout Europe at the beginning of the quarter as well as increasing partner adoption of Zalando’s platform services. The company saw its Partner Program grow strongly as brands and retailers increased their online activities and connected more of their inventory to the Zalando platform. Brands also utilized Zalando Fulfillment Solutions and Zalando Marketing Services more strongly to capture sales.
The adjusted operating profit (Ebit) of €184.1 million compares to €211.9 million in the second quarter of 2020. The Ebit margin declined from 9.8 percent to 6.8 percent, mainly due to an increase in marketing costs. Net income of €120.4 million compares to €122.6 million in the prior year second quarter.
In the Fashion Store segment, the DACH region (Austria, Germany, and Switzerland) saw sales increase to €1,159.3 million from €863.4 million in the second quarter last year, generating adjusted Ebit of €124.4 million. Fashion Store sales in the Rest of Europe were €1,331.4, up from €1,006.8 in the prior year quarter, with adjusted Ebit of 73.7 million. The Offprice segment posted a revenue growth of 42.9 percent in the quarter. Revenues in all other segments grew by 66.5 percent, primarily driven by the strong performance of Zalando Marketing Services.
Site visits jumped from 1,296.2 million in the second quarter of 2020 to 1,688.9 million in the latest period, representing a 30.3 percent increase. The number of active customers grew by 30.6 percent to 44.5 million. The number of orders grew by 41.2 percent to 65.6 million.
Zalando further expanded its footprint across Europe by launching new platforms in new markets. The platforms in Lithuania, Slovakia and Slovenia were launched in early June. Croatia, Estonia and Latvia went live in late July.
Zalando has reiterated its outlook for the financial year 2021. GMV is expected to grow by 31-36 percent to €14.0-14.6 billion, and revenues are expected to grow by 26-31 percent to €10.1-10.5 billion.
