Zalando’s Q2 success sets the stage for a promising second half!
- Zalando raises profit forecast for H2 after record Q2 performance.
- Active customer base grew by 3.7 million (15.2%) to 28.3 million.
- Site visits increased by 34.3% to 986.4 million, with 84% from mobile devices.
- Group revenues rose by 20.1% to €1.59bn, up from €1.33bn last year.
- Adjusted profits increased by 6.4% to €101.7m.
- Gross Merchandise Volume (GMV) grew by 23.7% to €2bn.
- Profitability outlook now expected to reach upper half of adjusted EBIT range.
- Zalando plans to build a £180m fulfillment center near Rotterdam.
Zalando, the online fashion retailer, has raised its profit forecast for the second half of the year after achieving its strongest-ever second quarter in terms of active customer growth. The company reported a significant increase in its active customer base, which grew by 3.7 million, or 15.2%, year-over-year, reaching a total of 28.3 million across its 17 European markets. Additionally, site visits surged by 34.3%, totaling 986.4 million, with a remarkable 84% of these visits coming from mobile devices. This surge in activity led to a record number of orders, totaling 36.1 million. As a result, Zalando experienced a 20.1% increase in group revenues, amounting to €1.59 billion, up from €1.33 billion the previous year. The company also reported a 6.4% rise in adjusted profits, reaching €101.7 million. Furthermore, Gross Merchandise Volume (GMV) saw a substantial growth of 23.7%, totaling €2 billion. Zalando’s CFO, David Schröder, expressed confidence in the company’s direction, stating that more customers are choosing Zalando as their go-to fashion destination, validating their efforts to enhance the shopping experience. The company anticipates that its profitability will reach the upper half of the adjusted EBIT range of €175 million to €225 million. In line with its growth strategy, Zalando is also set to build a new £180 million fulfillment center near Rotterdam to better serve its western European customers, particularly in France, Spain, and the UK.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Zalando’s Q2 performance, including active customer growth, site visits, revenue increase, adjusted profits, and plans for expansion. It also includes a quote from the CFO that supports the company’s strategy.
Noise Level: 1
Noise Justification: The article provides relevant information about Zalando’s Q2 performance and growth, including active customer growth, site visits, revenues, profits, and GMV. It also mentions the company’s plans for a new fulfillment center in Europe. However, it lacks analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. There is no scientific rigor or intellectual honesty, and it does not provide actionable insights beyond stating the company’s growth strategy.
Financial Relevance: Yes
Financial Markets Impacted: Zalando’s stock price and other online retailers’ stocks may be impacted
Financial Rating Justification: The article discusses Zalando’s financial performance, including revenue growth, profit increase, and updated profitability outlook. This information can affect the company’s stock price and potentially impact other online retailers in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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