Lower costs and successful inventory management drive improved profitability

  • Zalando’s Q1 revenues reach €2.2bn
  • Adjusted EBIT rises to €28.3m
  • Gross merchandise volume (GMV) increases by 1.3% to €3.3bn
  • Improved profitability driven by lower fulfilment costs and successful inventory management
  • Zalando launches premium sports brand ‘On’ in 22 markets
  • Size-advice-with-body-measurement tool rolled out to customers in Spain, France, and Italy
  • Full-year guidance for 2024 confirms growth in GMV and revenue
  • Adjusted EBIT expected to be between €380m and €450m
  • Positive response from customers and partners in Q1
  • B2C and B2B growth vectors contributing to results

Zalando, the online fashion retailer, has announced impressive financial results for the first quarter of 2024. Revenues reached €2.2bn, while adjusted EBIT rose to €28.3m, in line with market expectations. The company also saw a 1.3% increase in gross merchandise volume (GMV) to €3.3bn compared to the same period last year. This growth in profitability can be attributed to lower fulfilment costs and successful inventory management, resulting in an improved gross margin. Zalando’s expansion efforts were evident with the launch of the premium sports brand ‘On’ in 22 markets. Additionally, the company rolled out its size-advice-with-body-measurement tool to customers in Spain, France, and Italy, enhancing the digital experience. Zalando remains optimistic about the future, confirming its full-year guidance for 2024, with expected growth in both GMV and revenue. Adjusted EBIT is projected to be between €380m and €450m. The positive response from customers and partners in the first quarter highlights the strength of Zalando’s ecosystem strategy, with both B2C and B2B growth vectors contributing to the company’s success.

Factuality Level: 8
Factuality Justification: The article provides specific financial data and quotes from Zalando’s CFO, Dr. Sandra Dembeck, to support the reported revenue and earnings figures. The information is presented in a straightforward manner without digressions or unnecessary details. There is no apparent bias or sensationalism in the reporting.
Noise Level: 3
Noise Justification: The article provides specific financial data and performance metrics for Zalando in the first quarter of 2024. It includes details on revenue, adjusted EBIT, gross merchandise volume, and the company’s strategies for growth. The information is relevant and focused, without excessive noise or irrelevant content.
Financial Relevance: Yes
Financial Markets Impacted: Zalando’s positive financial performance may impact the company’s stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Zalando’s financial performance and future guidance, indicating its relevance to financial topics. However, there is no mention of an extreme event or any specific impact on financial markets or companies.

Reported publicly: www.retailsector.co.uk