German e-commerce firm Zalando's GMV up 25% in third quarter

10 Nov '21

2 min read

Pic: Zalando

Zalando, Europe’s leading online platform for fashion and lifestyle, has reported a 25.3 per cent growth in gross merchandise value (GMV) during the third quarter (Q3) of FY21 to €3.0 billion, compared to the GMV of €2.4 billion in the same period of last fiscal. The group's revenue for the quarter improved 23.4 per cent to €2.3 billion (Q3 FY20: €1.8 billion).

“Throughout the year we progressed strongly across all areas of our strategy, always keeping our focus on our long-term vision to be the Starting Point for Fashion and build a truly sustainable platform business with more than €30 billion in GMV by 2025. We are looking confidently ahead into 2022, with several strategic initiatives in the pipeline that will excite customers and partners alike and push our sustainability agenda further forward,” Robert Gentz, Zalando co-CEO at Zalando, said in a press release.

Zalando adjusted EBIT (earnings before interest and taxes) for the quarter totalled to €9.8 million (€118.2 million). Also during the Q3, Zalando introduced new business practices for circularity along the full product lifecycle, from developing design standards to investing in new recycling technologies.

“To make further progress towards being the Starting Point for Fashion in 2022, Zalando will focus on engaging customers across multiple propositions. Significantly accelerating the partner business beyond Germany will be a key driver of the company’s further platform transition,” the Germany-based e-commerce firm stated.

By segment, fashion stores recorded growth in sales to €2.0 billion (€1.6 billion). DACH region’s Q3 sales improved to €917.0 million (€764.5 million), while rest of Europe’s sales expanded to €1.1 billion (€899.8 million).

“We are pleased to see our strong performance continue in the third quarter, the first quarter with economies fully reopened. Despite growing inflation and supply chain uncertainties, we remain confident to achieve our upgraded full-year outlook and are now looking forward to exciting our customers and supporting our partners over cyber week and the upcoming festive season,” David Schröder, chief financial officer at Zalando said.

Fibre2Fashion News Desk (JL)

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