Berlin-based e-tailer Zalando reports a net profit of €10 million against a €82.7 million loss in the year-ago period. The group described the first nine months of its financial year as “characterized by the normalization of e-commerce penetration, ongoing pressure on consumers’ disposable income, and a delayed fall/winter season start caused by adverse weather conditions.”
Ebit fell by 8.2 percent to €27.3 million from €34.9 million in the year-ago period.
The company says it remains committed to strengthening its gross margin, partly through an ongoing effort to increase the relevance of its assortment and drive customer engagement. It is also working to reduce complexity and focus on simplicity in its organization to accelerate execution. Under updated FY23 guidance, Zalando is now forecasting annual adjusted Ebit of €300-350 million.
Nine-month revenues fell by 1.3 percent to €7,086.9 million as the number of active customers remained flat at 50.1 million due to a slowdown in new customer acquisition. Fashion store revenues were €5,759.7 million and €1,246.8 million in the off-price segment.
A promotional marketplace that was impacted by the delayed start to the fall/winter season and high inventory positions across the sector contributed to a 1.2 percent drop in gross margin to 38.5 percent. Fulfillment costs as a percentage of revenues declined by 2.5 percent due, helped by efficiency measures, favorable order economics and partners paying a higher share of such expenses. Meanwhile, nine-month marketing expense decreased by 60 basis points to 7.0 percent of revenues, or €498.3 million, because of a more focused investment approach and growth in the off-price segment, which requires less marketing spend.
In Q3 ended Sep. 30, Zalando’s gross merchandise volume (GMV) fell by 2.4 percent to €3,202.2 million on a 3.2 percent decline in total revenues to €2,274.9 million. The average GMV per active customer improved by 1.5 percent to €294.5, but the average number of orders per active customer declined by 3.2 percent to 5.0 times.
