FX.co ★ Zalando Turns To Profit In Q3 With Growth In Revenues, GMV; Confirms FY24 Outlook

Zalando SE (ZLNDY), the German online retail giant specializing in fashion and lifestyle items, announced its financial results for the third quarter on Tuesday. The company posted a net income of 44.3 million euros, a significant turnaround from the loss of 8.2 million euros recorded in the same period last year.

The adjusted group EBIT (Earnings Before Interest and Taxes) showed a notable increase, soaring to 92.7 million euros from the prior year's figure of 23.2 million euros. Consequently, the adjusted EBIT margin improved to 3.9%, up from 1.0% a year prior.

During this quarter, the group's revenue experienced a 5% rise, reaching 2.39 billion euros compared to 2.27 billion euros in the previous year. The gross merchandise volume (GMV) also saw a growth of 7.8%, climbing to 3.46 billion euros from last year's 3.21 billion euros.

Additionally, the number of active customers experienced an increase of around 500,000 from the preceding quarter, bringing the total to 50.3 million in the third quarter.

Looking forward, Zalando reaffirmed its recently updated guidance for the 2024 fiscal year. The company anticipates a GMV growth of between 3% and 5%, while revenue is expected to increase by 2% to 5%. Furthermore, adjusted EBIT is projected to rise between 440 million euros and 480 million euros.