Zalando Q3 FY20 revenue escalates 21.6% to €1.84 bn

11 Nov '20

2 min read

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Zalando SE, Europe’s leading online platform for fashion and lifestyle, posted 21.6 per cent revenue growth to €1.84 billion in its third quarter (Q3) FY20 ended on September 30, compared to the revenue of €1.52 billion in same period last fiscal. During the quarter, company’s GMV (Gross Merchandise Value) was €2.45 billion (Q3 FY19: €1.89 billion).

“As the second coronavirus wave is starting more forcefully than anticipated, we are much better prepared than earlier in the year. Our starting point for fashion strategy continues to enable us to turn the accelerated consumer demand shift towards digital offerings into business opportunities for Zalando and its partners,” David Schröder, Zalando's chief financial officer, said in a press release.

Gross profit for Q3 FY20 increased to €820.7 million (€624.7 million). Earnings before interest and taxes (EBIT) rose to €105.1 million (loss: €6.9 million). Company's net income for the quarter grew to €58.5 million (€13.6 million).

As a result of its strong financial performance, Zalando raised its outlook for fiscal 2020 and now it expects gross merchandise volume (GMV) to grow 25-27 per cent, and revenues to grow 20-22 per cent.

“We will continue to invest to drive strong growth beyond 2020 following our key strategic priorities: growing our active customer base, deepening customer relationships and driving our platform transition,” Schröder said.

Fibre2Fashion News Desk (JL)

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