Europe’s Zalando expects GMV to grow 3-7% in FY22
Revenue is expected to grow 0-3% to €10.4-10.7 billion with adjusted EBIT of €180-260 million during the same period. Capital expenditure is expected to be in the range of €350-400 million.
European online platform Zalando expects profitability to improve and return to growth in the second half of the year, confirming its full-year outlook. It confirmed guidance provided on June 23, 2022, for fiscal year 2022 (FY22) with Gross Cargo Volume (GMV) expected to grow 3-7% to 14.8-15 ,3 billion euros.
In Q2 (Q2), the number of active customers of the company has steadily increased to more than 49 million (11% YoY). In the process of deepening customer relationships, the company’s loyalty program, Zalando Plus, has grown 164% year-over-year, with more than 1.5 million members, the company said. know in a media release.
The company’s total cargo throughput for the second quarter of 2022 reached €3.8 billion, representing a flat growth, compared to the extremely strong second quarter of 2021, amid a challenging macroeconomic environment. knowledge due to external factors, notably falling consumer confidence, inflationary pressures and selected supply shortages affecting availability. Revenue fell 4% to €2.6 billion mainly due to the business transition to a platform model. Zalando reported adjusted EBIT of €77.4 million, resulting in a margin of 3%.
Robert Gentz, Co-CEO at Zalando, said: “We have shown our agility as a team, showing that we can react quickly to adapt to the current environment while also making the customer experience become more inspiring and engaging. We continue to grow our client base and are fully focused on our strategy and selectively investing across our entire business to ensure our long term growth. “
Zalando is moving forward with its strategy of becoming the entry point for fashion by deepening relationships with customers and strengthening relationships with partners to accelerate the growth of its platform business model. . During the second quarter, Zalando invested in enhancing the customer experience. Zalando launched its Plus membership program in Switzerland, and expanded to Romania and Hungary, expanding its operations to 25 markets. In addition, Zalando Lounge has launched in Romania, Slovakia and Lithuania. In June, Zalando acquired a majority stake in Highsnobiety.
As part of its action plan to adapt to today’s volatile market environment, Zalando is adapting its offering to meet the changing needs of its customers in the coming seasons. To improve order economics, a minimum order value was introduced in 15 additional markets in early June and is now available in all 25 markets. With the aim of adjusting the cost base, Zalando has reduced marketing spending and driven efficiency improvements across its entire European logistics network.
Fiber2 Fashion News Desk (KD)