- Prachi Singh
Zalando SE has upgraded its full year guidance following strong performance in the second quarter of 2020. The company is confident to deliver strong and profitable growth for the full year and now expects to grow GMV by 20-25 percent and revenue by 15-20 percent in 2020. It further expects an adjusted EBIT of 250-300 million euros and investments between 230-280 million euros.
According to preliminary figures for the second quarter of 2020, Zalando has grown GMV by 32-34 percent to 2.67-2.71 billion euros and group revenues by 26-28 percent to 2.01-2.05 billion euros. Zalando expects an adjusted EBIT in the range of 200-220 million euros, indicating that the performance is back on track after a challenging trading environment in the first quarter. As per June 30, 2020, cash and cash equivalents stand at 1.38 billion euros.
Commenting on second quarter trading and outlook, Zalando’s Chief Financial Officer, David Schröder, said in a statement: “The high number of new customers shows that we offer a compelling customer experience in these challenging times. Due to prevailing health and safety concerns, customers generally like to shop online, and they particularly like to shop with us. As a result, we were able to successfully scale our platform business in the second quarter and to make significant progress in building the Starting Point for Fashion in Europe.”
Additionally, between April and June, Zalando saw around 180 new partners joined the partner program. Consequently, partner program GMV grew more than 100 percent year-over-year. The company said, it will further invest into its platform business in the second half of 2020, as well as into expanding its relationships with brands in the wholesale business. In August, Swedish design brand Arket from H&M Group will become available for all Zalando customers.
Zalando will publish the financial results for the second quarter on August 11, 2020.