With the release of its second quarter 2022 figures, Zalando has expressed confidence in returning to profitability in the second half of 2022 with a set of measures to address the volatile market environment. In the second quarter of 2022, the number of active Zalando customers grew to over 49 million (11 percent year-on-year). The company’s loyalty program, Zalando Plus, grew 164 percent to over 1.5 million members.
Highlights of the Q2 report include:
- Second quarter gross merchandise volume (GMV) came out flat compared to Q2 2021 at €3.8 billion, revenue of €2.6 billion (-4 percent YoY) and adjusted Ebit of €77.4 million.
- Zalando Plus grew 164 percent year-on-year and exceeded 1.5 million members.
- The company’s action plan to adapt to the environment aims for improved profitability for the second half of the year.
- Planned investments through to drive deeper engagement with customers and growth in the partner business.
- Zalando expanded to Romania and Hungary, increasing its footprint to 25 markets.
- The Plus membership program was launched in Switzerland; additionally, Zalando Lounge launched in Romania, Slovakia and Lithuania.
- Investment in customer experience in the beauty assortment led to a 30 percent growth of the segment year-on-year.
In June, Zalando acquired a majority stake in Highsnobiety, one of the most influential fashion and lifestyle media companies. According to a company release, Zalando is further adjusting its offering to meet changing customer demands for the upcoming seasons. In order to improve the cost-effectiveness of orders, a minimum order value was introduced in 15 additional stores at the beginning of June and now applies in all 25 stores in which the company operates. To adjust its cost base, Zalando also reduced its marketing spend and made efficiency improvements in its European logistics network.
