Zalando has upgraded its outlook for the financial year 2021 following strong and profitable growth in the first quarter, continued elevated growth levels in the second quarter, and a stable outlook for the second half of the year.
The company now expects gross merchandise volume (GMV) to grow 31-36 percent to 14 to 14.6 billion euros for the financial year 2021. The company expects revenues to grow 26-31 percent to 10.1-10.5 billion euros and an adjusted EBIT of 400-475 million euros in the same period.
Zalando previously assumed GMV growth of 27-32 percent, revenue growth of 24-29 percent and an adjusted EBIT of 350-425 million euros for the full year 2021.
Zalando’s Q1 sales and profit surge
Zalando reported GMV growth of 55.6 percent to 3.2 billion euros and revenue growth of 46.8 percent year-on-year to 2.2 billion euros in the first quarter fuelled by a continued rise in consumer demand for online offerings and an outstanding growth in the partner business.
In addition to a very strong growth momentum, Zalando achieved a positive adjusted EBIT of 93.3 million euros or margin of 4.2 percent, which was mainly driven by a strong sell-through and a continued lower return rate. The company also saw active customers reach 41.8 million at the end of the first quarter.
Commenting on the first quarter trading, Zalando’s chief financial officer 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.”
The company plans to expand its European logistics network of currently 10 fulfilment centers and add five fulfilment centers to the existing network by 2023. The company said, two centers in Rotterdam and Madrid are close to completion and will go live in 2021. Construction works on three new fulfilment centers in France, Germany, and Poland will kick off in the next twelve months.