Zalando Enjoys Record-Breaking Quarterly Profits Due to Increase in Summer Sports Events

The second quarter witnessed a notable surge in Zalando’s profits, fueled by a robust performance in its sports, haute couture, and cosmetics sectors. The company’s Earnings Before Interest and Taxes (EBIT) increased by 18% to £147.1m (€171.6m) from £124.2m (€144.8m). This advancement was attributed to efficient stock management and decreased delivery expenses, leading to a 0.8% elevation in the EBIT margin to 6.5%. Revenue climbed by 3.4% to £2.2bn (€2.6bn), with total merchandise value also up by 2.8% to £3.2bn (€3.8bn).

Zalando leveraged the ‘Summer of Sports’ trend by initiating focused campaigns in major cities across Europe and unveiling its innovative adaptive sports collection. This initiative resulted in a record-breaking sports performance in June. The company recently revamped its strategy to concentrate on establishing itself as the foremost pan-European online fashion and lifestyle hub, highlighting growth in both consumer-facing and business-facing segments.

The company reiterated its annual forecast, predicting an adjusted Earnings Before Interest and Taxes (EBIT) in the bracket of £326.2m to £386.3m (€380m to €450m), with an expected growth of 0% to 5% in both total merchandise value (GMV) and revenue for the year. Zalando also disclosed the chief financial officer, Dr. Sandra Dembeck’s decision not to renew her contract beyond February 28, 2025, as she pursues a fresh career opportunity.

Zalando’s Co-CEO, Robert Gentz, voiced optimism in their ecosystem approach, highlighting the favorable reception from consumers and collaborators. He emphasized the rising interest of consumer-facing customers in the company’s new brand offerings, digital platforms, and expanding lifestyle assortments. Zalando also saw a substantial increase in their business-facing segment, indicating success in both expansion fronts.