Zalando Starts 2019 with Strong and Profitable Growth

  • Active customer growth to 27.2 million (+14.1%), traffic uplift to 924 million site visits (+29.5%)
  • All-time high customer satisfaction translates into strong Gross Merchandise Volume (GMV) growth and positive adjusted EBIT
  • Platform business continues to gain traction
  • Zalando confirms full-year guidance

BERLIN, MAY 2, 2019 // In the first quarter of 2019, Zalando successfully expanded its customer reach, as active customers increased by 14.1% to 27.2 million and site visits increased by 29.5% to 924 million. Customers ordered more frequently than before, and customer satisfaction hit an all-time high. Zalando will further strengthen this positive development by deepening customer relationships with Zalando Plus, which is available for all Zalando customers in Germany. A pilot project is live in Switzerland, with France and Italy to follow within the next twelve months.

Co-CEO Rubin Ritter said: “Our clear customer focus has paid off in the first quarter, as we made further headway to build the starting point for fashion in Europe.”
 Zalando continued to capture market share in the first quarter of 2019, growing Gross Merchandise Volume (GMV) by 23.1% to EUR 1.8 billion and revenues by 15.2% to EUR 1.4 billion. GMV growth notably outpaced revenue growth due to the strong development of the Partner Program and revenue recognition effects. Europe’s leading online platform for fashion and lifestyle achieved a positive adjusted EBIT of EUR 6.4 million or margin of 0.5%, which was supported by an improved gross margin.
Zalando continues to successfully scale its services for partners, as the platform business continues to gain traction: The strong growth of Zalando’s Partner Program was driven by brands intensifying their usage as well as by new partners joining the program, such as Calzedonia, Intimissimi or Margarete Steiff. In the first quarter, about 30% of all Partner Program orders were fulfilled through Zalando Fulfillment Solutions (ZFS). With a newly acquired e-money licence Zalando will further strengthen and expand Zalando Payments Solutions (ZPS) by improving payment transactions on the Zalando platform.
Chief Financial Officer David Schröder said: “We are happy with our financial results in the first quarter, which show a strong focus on growth and are in line with our annual guidance. We will continue to invest in areas of our business that have high added value for our customers.”
Zalando confirms its full-year guidance of GMV growth between 20% and 25%, revenue growth at the low end of this range, an adjusted EBIT between EUR 175 million and EUR 225 million and capital expenditure of around EUR 300 million.
The earnings presentation for analysts and investors is available on the Zalando Investor Relations website. Zalando will report results for the second quarter of 2019 on August 1, 2019.

 

Zalando Group – Key Figures (in EUR million)

Q1 2019 Q1 2018
Group revenue 1,378.2 1,196.0
% growth 15.2% 22.0%
Fashion Store 1,268.5 1,093.9
     Thereof DACH 621.7 552.0
     Thereof Rest of Europe 646.8 541.9
Offprice 136.8 120.4
Other 102.6 99.8
Reconciliation -129.7 -118.1
Adjusted group EBIT 6.4 0.4
Adjusted group EBIT margin 0.5% 0.0%
Fashion Store 8.4 -0.2
     Thereof DACH 26.3 16.6
     Thereof Rest of Europe -18.0 -16.8
Offprice 3.8 8.5
Other -6.2 -8.3
Reconciliation 0.4 0.4
Net working capital -12.4 -34.8
Capital expenditure -42.3 -41.8
Net income -17.6 -15.1

Zalando Group – Key Performance Indicators

Q1 2019 Q1 2018 Change
Site visits (million) 923.9 713.5 29.5%
Mobile visit share (% of site visits) 82.4 76.6 5.7pp
Active customers (million) 27.2 23.9 14.1%
Number of orders (million) 31.4 25.4 23.6%
Average orders per active customer 4.5 4.0 11.5%
Average basket size (LTM, EUR) 57.1 59.4 -3.9%
Average basket size (quarter, EUR) 55.9 56.1 -0.4%
Group GMV (billion EUR) 1.76 1.43 23.1%

Definitions are available in the quarterly statement and annual report.

About Zalando
Zalando is Europe’s leading online platform for fashion and lifestyle. Founded in Berlin in 2008, we bring head-to-toe fashion to more than 27 million active customers in 17 markets, offering clothing, footwear, accessories and beauty. The assortment of international brands ranges from world famous names to local labels. Our platform is a one-stop fashion destination for inspiration, innovation and interaction. As Europe’s most fashionable tech company, we work hard to find digital solutions for every aspect of the fashion journey: for our customers, partners and every valuable player in the Zalando story. Our goal is to become the starting point for fashion.