Europe's leading online fashion platform, Zalando, has reported a 2.8 per cent increase in gross merchandise volume (GMV) to €3.2 billion and a 2.3 per cent increase in revenue to €2.3 billion in the first quarter (Q1) of fiscal 2023 (FY23) compared to the same period last year.  The company’s number of active customers grew 4.8 per cent compared to the previous year, reaching 51.2 million.

The company broke even at adjusted EBIT level, a significant improvement compared to a loss of €52 million in the first quarter of last year. Better order economics, primarily bigger basket sizes as customer spending remained resilient, led to lower fulfilment costs and a significant improvement in adjusted EBIT, Zalando said in a media release.

The company's off-price segment successfully captured customer demand, with sales growth of 33 per cent year-on-year (YoY). Additionally, partner GMV share grew to 39 per cent of fashion store, indicating progress in the platform strategy.

“The first quarter demonstrated how flexible our business model is, enabling us to perform in a challenging market environment as we saw strong customer demand at our Offprice segment and a strong performance of the partner business,” said Robert Gentz, Co-CEO of Zalando. “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. These exclusive and limited-edition products keep our customers coming back more regularly.”

Fibre2Fashion News Desk (DP)

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