Zalando, the prominent German etailer, reported a notable revenue growth of 3.4% in the second quarter of 2024 driven by heightened demand for sportswear.
- The quarterly revenue reached €2.6 billion, reflecting a significant increase compared to the previous year, amid an uplift in the sports segment.
- Zalando’s gross merchandise volume rose to €3.8 billion, with an adjusted EBIT showing marked improvement due to operational efficiencies.
- The company successfully capitalised on the ‘Summer of Sports’ through strategic marketing campaigns featuring key sports personalities.
- Investment in AI-powered customer experiences and business-to-business expansion contributed to the improved financial results.
Zalando, Europe’s largest fashion e-commerce platform, reported a revenue increase of 3.4% in its second quarter of 2024, reaching €2.6 billion (£2.23 billion). This growth was primarily attributed to heightened demand for sportswear and effective leveraging of the ‘Summer of Sports’ momentum.
Gross merchandise volume (GMV) witnessed an upward shift to €3.8 billion (£3.26 billion), marking a 2.8% increase. The company recorded an adjusted EBIT of €171.6 million (£147.1 million), an improvement from €144.8 million (£124.8 million) in the corresponding period of the previous year. This was driven by an enhanced gross margin and a reduction in operating expenses.
Zalando has maintained its full-year forecast for 2024, anticipating both GMV and revenue to rise by up to 5% from 2023 levels. The adjusted EBIT is projected to lie between €380 million (£325.9 million) and €450 million (£385.9 million).
Zalando’s strategy to expand its lifestyle offerings paid off, particularly in the sports, designer, and beauty categories. The ‘Summer of Sports’ initiative included highly successful campaigns in major European cities featuring prominent footballers like Robert Lewandowski and David Alaba, resulting in record-breaking monthly sports performance in June.
The company’s focus on innovation was highlighted by investments in AI-driven customer experiences and the expansion of its business-to-business ecosystem. This included the deployment of the Zalando Assistant powered by OpenAI’s large language models.
In corporate developments, Astrid Arndt has been reappointed as Chief People Officer for another term, while Chief Financial Officer Sandra Dembeck has opted not to renew her contract, ending in February 2025. In a strategic move, co-founder David Schneider will step down as co-CEO to pursue new strategic partnerships.
Zalando’s strategic initiatives in the sportswear market and innovative customer engagement have fueled its positive financial performance in 2024.
