With 145 million orders, more than 4 billion site visits, and 4.6 million additional active customers, Zalando has significantly grown its business in 2019. A record number of 31 million customers (2018: 26.4 million) have ordered from Zalando in the past year, bringing the company closer to its vision to become the starting point for fashion in Europe.
The strong development of customer KPIs translated into strong financial growth. For the full year, Europe’s leading online platform for fashion and lifestyle grew its GMV (Gross Merchandise Volume) by 23.6 per cent to €8.2 billion (2018: €6.6 billion), its revenues by 20.3 per cent to €6.5 billion (2018: €5.4 billion) and achieved an adjusted EBIT of €224.9 million (2018: €173.4 million). Growth was especially pronounced in the fourth quarter with GMV up 24.3 per cent to €2.5 billion and revenue up 19.5 per cent to €2 billion at an adjusted EBIT of €110.4 million, pushed by record-breaking results during Cyber Week, according to Zalando.With 145 million orders, more than 4 billion site visits, and 4.6 million additional active customers, Zalando has significantly grown its business in 2019. A record number of 31 million customers (2018: 26.4 million) have ordered from Zalando in the past year, bringing the company closer to its vision to become the starting point for fashion in Europe.#
In line with its platform strategy, Zalando significantly grew the share of the Partner Program, which at the end of the year accounted for 15 per cent of Zalando’s Fashion Store GMV. Growth was enabled through scaling services that make it easier for brands to be successful on the platform such as Zalando Fulfillment Solutions (ZFS) and Zalando Marketing Services (ZMS). In the fourth quarter, around 40 per cent of Partner Programme items were shipped through ZFS.
In 2020, Zalando will make several investments that underline its ambition to become the Starting Point for Fashion. Firstly, the company will expand its premium segment to include luxury brands. In order to gain more market share in the €38 billion market for premium fashion, Zalando plans to double its premium and luxury assortment before year end 2023. The company has recently added Moschino Couture and Alberta Ferretti, and will further expand the category by creating an inspiring and relevant experience for both customers and brand partners.
Additionally, the company will scale its pre-owned fashion pilot and launch ‘Pre-Owned’ as a new category on the Zalando destination. Starting in the third quarter of 2020, customers will be able to buy curated pre-owned fashion, as well as sell their pre-owned fashion items to Zalando. The category launch supports Zalando’s ambition to build deep customer relationships by creating even more customer touch points, and brings the company closer to the goal to become a sustainable fashion platform.
Zalando will furthermore extend its European logistics network by opening a local warehouse in Spain. With this warehouse, Zalando will significantly improve its convenience offering and thereby unlock future customer growth in the region.
In line with its growth strategy for 2023/24, Zalando expects to grow its GMV between 20 and 25 per cent and it expects revenues to grow between 15 and 20 per cent in 2020. The company expects continued profitable growth and an adjusted EBIT between €225 and €275 million, as well as capital expenditure of around €330 million. These expectations exclude a potential negative impact caused by the Coronavirus.
Fibre2Fashion News Desk (GK)
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