Zalando upgrades guidance as Q3 sees stronger demand

Ahead of its results release due on 5 November, e-tail giant Zalando has issued a Q3 update and said that gross merchandise volume (GMV) rose 7.8% to €3.5 billion, revenue rose 5% to €2.4 billion and profit (adjusted EBIT) climbed from €23 million to €93 million.

Full-year 2024 GMV is expected to grow between 3% and 5%, up from the previous guidance range of 0% to 5%. And revenues are expected to grow 2% to 5%, again up from the previous guidance range of 0% to 5%. Full-year 2024 adjusted EBIT should be €440 million-€480 million, up from a previous outlook of €380 million-€450 million.

The company said the upgrades come “as its ecosystem strategy around quality, lifestyle expansion, inspiration and opening up its B2B capabilities enabled the company to capture increasing consumer demand in the third quarter amid an industry-wide strong start to the fall/winter season. The number of active customers continued its positive trend and stands above 50 million”.

According to preliminary figures, Q3 GMV rose by 7.8% from a year earlier to €3.5 billion, and revenue rose by 5% to €2.4 billion, while adjusted EBIT increased from €23 million to €93 million.

Co-CEO Robert Gentz said the company is now doubling down on its investments in key strategic initiatives, “such as driving customer loyalty, making fashion discovery more inspiring and entertaining, and further strengthening its European logistics network”.