Exceptional Growth Drives Strongest Quarter Since IPO in 2014
- Zalando raises full-year guidance after strong Q1 performance
- Revenues of €2.2bn (£1.9bn) and profits of €93.3m (£80.7m)
- GMV growth expected to be 31-36% for the financial year 2021
- Revenue growth expected at 26-31%, adjusted EBIT at €400-475m (££346m-£411m)
- Exceptional new customer growth and high engagement of existing customers
- Reached 41.8 million active customers in Q1
- Strongest customer growth since 2013
Zalando has upgraded its full-year guidance following a record-breaking Q1 performance, with revenues of €2.2bn (£1.9bn) and profits of €93.3m (£80.7m), representing a YoY increase of 46.8% and 4.2%, respectively. The company now expects Gross Merchandise Volume (GMV) to grow by 31-36% to €14.0-14.6bn (£12.1bn-£12.6bn) for the financial year 2021, and revenues to grow 26-31% to €10.1-10.5bn (£8.6bn-£9bn) with an adjusted EBIT of €400-475m (££346m-£411m). Zalando attributed the performance to exceptional new customer growth and high engagement from existing customers, achieving its strongest customer growth since 2013. CFO David Schröder said: ‘In the first quarter of 2021, Zalando delivered the strongest growth ever since going public in 2014. We see our platform business unfolding at increasing speed, creating benefits for customers and partners alike and allowing us to make fast strides on our journey towards being the Starting Point for Fashion.’
Factuality Level: 10
Factuality Justification: The article provides accurate information about Zalando’s financial performance, growth, and customer base, with no signs of sensationalism or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about Zalando’s financial performance and growth, with clear numbers and comparisons to previous years. It also includes a quote from the CFO that adds context to the company’s success. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Zalando’s stock price may be impacted by its strong financial performance and upgraded guidance.
Financial Rating Justification: The article discusses Zalando’s financial performance, including revenue growth, profit increase, and upgraded full-year guidance. This information is relevant to investors and could potentially impact the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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