German e-commerce firm Zalando's sales spike despite lockdown in Q2

07 Aug '21

2 min read

Pic: Zalando

Despite extended lockdowns remained in place in some markets during the beginning of second quarter (Q2), Europe’s leading online platform for fashion and lifestyle Zalando SE reported 40.0 per cent growth in gross merchandise value (GMV) to €3.8 billion (Q2 FY20: €2.7 billion). Group revenue increased 34.3 per cent to €2.7 billion (€2.0 billion).

“Even more than our outstanding financial performance in the second quarter, the increasing engagement by customers and brands underlines the long-term relevance of the Zalando platform and is a strong proof point of our successful strategy,” David Schröder, chief financial officer at Zalando, said in a press release.

Zalando achieved solid profitability in Q2 FY21 with an adjusted EBIT of €184.1 million and a margin of 6.7 per cent. Sales from fashion stores rose to €2.5 billion (€1.9 billion), with DACH region contributing €1.2 billion (€863.4 million), while Rest of Europe sales grew to €1.3 billion (€1.0 billion).

Starting in the Q4 of FY21, Zalando will offer the prestige beauty offering of Sephora, the world’s leading omnichannel prestige beauty retailer, via its partner programme initially in Germany, according to the company’s statement.

“To serve consumers and partners even better in the future, we are particularly excited about the strategic partnership with Sephora to further elevate our beauty proposition and the expansion of the Zalando platform to six new countries,” Schröder added.

Zalando in its outlook for FY21 expects GMV to grow 31-36 per cent to €14.0-€14.6 billion, and revenues are expected to grow 26-31 per cent to €10.1 billion -€10.5 billion.

Fibre2Fashion News Desk (JL)

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