German fashion e-tailer Zalando has raised its profit outlook following a surge in visits to its website and orders in the second quarter of 2019.
The Berlin-based firm continued to gain market share in the quarter with gross merchandise volume (GMV) growing by 23.7% to EUR2bn, while revenues increased by 20.1% to EUR1.6bn. In the same period, Zalando achieved an adjusted EBIT of EUR101.7m or a margin of 6.4%.
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Net income, however, fell to EUR45.5m from EUR51.8m in the prior-year quarter.
Zalando said the number of active customers grew significantly in the quarter, up 3.7m (15.2%) year-on-year to 28.3m across its 17 European markets. In the same period, site visits went up 34.3% to 986.4m, 84% of which came through mobile devices, resulting in a record number of orders (36.1m).
“More customers than ever before have chosen Zalando as their starting point for fashion. This proves that our continuous efforts to deliver a best in class fashion experience pay off,” says CFO David Schröder.
The retailer has now raised its adjusted earnings before interest and tax (EBIT) outlook to the upper half of the EUR175-225m range, and confirmed its full-year guidance of GMV growth of 20% to 25%.
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By GlobalDataShares in the company remained up by more than 13% this afternoon (1 August).
