Companies

Zalando lowers full year GMV and revenue guidance

Nov 7, 2023 Germany

Despite confirming its 2023 profits guidance, the online retailer has lowered its GMV and revenue outlook revenue on the “expectation of continued pressure on demand for the rest of the year”

In the third quarter of fiscal 2023, Zalando posted a GMV decline of 2.4% to 3.2 billion euros and a revenue decrease of 3.2% to 2.3 billion euros, on a comparable basis to the same period of last year. The German-based company spoke of a “challenging macroeconomic environment of low consumer sentiment and declining online sales” to explain the performance.

Meanwhile, the online retailer reported that in the three months to the end of September, its adjusted EBIT totalled 23.2 million euros, increasing from the 13.5 million euros recorded in the same quarter a year ago, “boosted by lower fulfilment costs”.

Zalando also highlighted the introduction of ‘Stories on Zalando’ in September, in collaboration with Highsnobiety, aimed at offering customers curated content in visual formats such as short videos, as well as the launch of a new luxury boutique style space for designer brands in the Fashion Store and Zalando’s eCommerce Operating System (B2B brand ZEOS), which allows brands and retailers to manage their multichannel business across Europe on a unified platform.

“Storytelling, logistics and technology are key to boost our future growth. Our healthy balance sheet gives us the financial flexibility to make these strategic investments”, commented Sandra Dembeck, Zalando's CFO. “On top of that, our financial discipline meant that we were able to deliver another quarter of improved profitability”, she concluded.

Full Year Guidance

The German-based online retailer confirmed that it still anticipates an adjusted EBIT between 300 million euros and 350 million euros in 2023. However, due to the “continued pressure on demand for the rest of the year”, it now expects its full year GMV and revenue to fall between minus 2% and 1% and minus 3% and minus 0.5%, respectively (previously: its GMV and revenue were expected to be in the lower half of the guidance ranges of 1% to 7% and minus 1% to 4%, respectively).

Image Credits: corporate.zalando.com

Germany ecommerce Fashion Online Quarter Results Results Zalando