Zalando, a leading online platform for fashion and lifestyle in Europe, has reported 6 per cent growth to over 51 million in the number of active customers in fiscal 2022 (FY22). The company more than doubled its membership to over 2 million compared to the previous year. Also, the gross merchandise volume (GMV) in FY22 grew 3 per cent to €14.8 billion.

The company’s revenue remained stable at €10.3 billion in FY22, while the proportion of partners contributing to Zalando’s Fashion Store GMV increased to 36 per cent, up six percentage points.

Zalando's adjusted earnings before interest and taxes (adjusted EBIT) for FY22 were €184.6 million, the company said in a press release.

To earn and retain the attention of customers, the company is improving the relevance of and curating its assortment. With the help of Highsnobiety, which the company acquired last year, it is highlighting fashion through storytelling, launching a fashion discovery experience that strengthens the emotional bond with customers. Zalando has done more than 80 curated product drops since the start of the collaboration. These drops were viewed by over 7 million unique users, who showed increased engagement with much higher click rates. 

Looking ahead to FY23, Zalando has provided guidance that it expects GMV to grow between 1 per cent and 7 per cent, revenue to develop between minus 1 per cent to 4 per cent, and adjusted EBIT of €280 million to €350 million. The company expects to approach the higher end of its 3-6 per cent adjusted EBIT margin goal by 2025 and reach double-digit margins in the long term.

“The fact that we were able to continue to grow our customer base in the current economic environment shows that our core strategy is working,” said Robert Gentz, co-CEO at Zalando. “We want our customers to love Zalando and that’s why we are deepening our relationships with them. Understanding their needs and likes is crucial. Then they’ll keep coming back to us and stay longer with us.”

Fibre2Fashion News Desk (DP)

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