ZALANDO SE (FRA:DE000ZAL) Zalando Delivers 40% Growth In Second Quarter 2021

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05/08/2021 06:55

DGAP-News: Zalando SE / Key word(s): Quarter Results/Half Year Results
Zalando Delivers 40% Growth In Second Quarter 2021

05.08.2021 / 06:55
The issuer is solely responsible for the content of this announcement.

Zalando Delivers 40% Growth In Second Quarter 2021

  • GMV grew 40.0% to 3.8 billion euros in the second quarter; adjusted EBIT margin of 6.7%
  • Growth driven by continued strong consumer demand for online offerings and increasing partner adoption of platform services
  • Zalando reiterates 2021 outlook, targeting GMV growth of 31-36% and now expecting to reach upper half of guided 400-475 million euros adjusted EBIT range

BERLIN, AUGUST 5, 2021 // Zalando, Europe's leading online platform for fashion and lifestyle, grew strongly in the second quarter of 2021, with Gross Merchandise Volume (GMV) up 40.0% to 3.8 billion euros. Growth was supported by continued strong consumer demand for online offerings, as extended lockdowns remained in place in some markets at the beginning of the quarter. The strong performance of Zalando's partner business as well as successful sales events also supported growth in the second quarter.

Over the past twelve months, more than 10 million active customers joined the Zalando platform, resulting in 44.5 million active customers at the end of the second quarter. Customers engaged with Zalando more frequently, with average orders per active customer reaching a new all-time high of 5.0. Customers acquired during the first lockdown period in 2020 continued to remain very active, also as pandemic induced restrictions have been gradually lifted and stores reopened throughout the quarter.

Brands and retailers continued to accelerate their online activities through the Zalando platform. Partner Program GMV grew strongly, over 100% year-over-year in the first half of 2021. This was driven by new partners and increased stock commitments as well as successful internationalization of existing partners. At the end of the first half of 2021, close to 4,700 brick-and-mortar stores were active in the Connected Retail program and sold through the Zalando platform. Brands also utilized Zalando Fulfillment Solutions and Zalando Marketing Services more strongly to capture sales, to drive customer satisfaction and to build their brand equity.

Zalando achieved solid profitability in the second quarter, with an adjusted EBIT of 184.1 million euros and a margin of 6.7%. Zalando has been investing significantly more into customer acquisition and brand marketing to capture the full demand opportunity in the second quarter this year, after the company had scaled down marketing efforts substantially in the second quarter of 2020 as part of its initial Corona response.

Zalando reiterates its outlook for the financial year 2021. GMV is expected to grow 31-36% to 14.0-14.6 billion euros, and revenues are expected to grow 26-31% to 10.1-10.5 billion euros. Based on an outstanding topline performance and continued return rate benefits in the first half of this year, the company now expects adjusted EBIT in the upper half of the guided range of 400-475 million euros. Capital expenditure is expected to come in at around 350 million euros (previously 350-400 million euros). All major logistics infrastructure projects to enable continued strong growth remain on track, yet some capital expenditure will be shifted into 2022. Furthermore, the group continues to expect negative net working capital for the fiscal year 2021.

David Schröder, Chief Financial Officer, says: "Even more than our outstanding financial performance in the second quarter, the increasing engagement by customers and brands underlines the long-term relevance of the Zalando platform and is a strong proof point of our successful strategy. To serve consumers and partners even better in the future, we are particularly excited about the strategic partnership with Sephora to further elevate our beauty proposition and the expansion of the Zalando platform to six new countries."

Starting in the fourth quarter of 2021, Zalando will offer the prestige beauty offering of Sephora, the world's leading omnichannel prestige beauty retailer, via its partner program initially in Germany. The strategic partnership combines Zalando's unparalleled customer experience and deep ecommerce expertise with Sephora's carefully curated assortment of several thousand exciting beauty products from more than 300 prestige and exclusive brands, its unique beauty expertise and marketing power in prestige beauty.

Zalando further expanded its footprint across Europe, launching the Zalando platform in six new markets. Customers in Lithuania, Slovakia and Slovenia can enjoy Zalando's endless choice, seamless convenience and tailored digital experience since early June; Croatia, Estonia and Latvia went live in late July. Zalando also created additional growth opportunities for existing and new brand partners by expanding its Partner Program to all six recently launched markets.

The half year report, as well as the earnings presentation for analysts and investors, is available on the Zalando Investor Relations website. Zalando will report the results for the third quarter of 2021 on November 3, 2021.


Zalando Group - Key Figures (in EUR million)

  Q2 2021 Q2 2020
Group GMV 3,787.8 2,706.1
percent growth 40.0% 33.7%
Group revenue 2,733.1 2,034.7
percent growth 34.3% 27.4%
Fashion Store 2,490.8 1,870.2
Thereof DACH 1,159.3 863.4
Thereof Rest of Europe 1,331.4 1,006.8
Offprice 360.5 252.2
Other 66.8 40.1
Reconciliation (184.9) (127.8)
Adjusted group EBIT 184.1 211.9
Adjusted group EBIT margin 6.7% 10.4%
Fashion Store 155.6 198.1
Thereof DACH 119.9 124.4
Thereof Rest of Europe 35.7 73.7
Offprice 27.0 15.8
Other (0.3) (1.3)
Reconciliation 1.8 (0.7)
Net working capital 12.8 (31.2)
Capital expenditure (51.6) (43.3)
Net income 120.4 122.6

Zalando Group - Key Performance Indicators

  Q2 2021 Q2 2020 Change
Site visits (million) 1,688.9 1,296.2 30.3%
Mobile visit share (% of site visits) 87.9% 85.9% 2.0pp
Active customers (million) 44.5 34.1 30.6%
Number of orders (million) 65.6 46.5 41.2%
Average orders per active customer 5.0 4.7 6.4%
Average basket size (LTM, EUR) 57.7 57.0 1.4%

Definitions are available in the Q2 and annual report.

Zalando (https://corporate.zalando.com) is Europe's leading online platform for fashion and lifestyle. Founded in Berlin in 2008, we bring head-to-toe fashion to around 45 million active customers in 23 markets, offering clothing, footwear, accessories, and beauty. The assortment of international brands ranges from world famous names to local labels. Our platform is a one-stop fashion destination for inspiration, innovation, and interaction. As Europe's most fashionable tech company, we work hard to find digital solutions for every aspect of the fashion journey: for our customers, partners and every valuable player in the Zalando story. Our vision is to be the Starting Point for Fashion and a sustainable platform with a net-positive impact for people and the planet.

Alexander Styles
Business & Financial Communications
+49 (0)152 22715810

Patrick Kofler
Investor Relations
+49 (0)30 20968 1584

05.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: Zalando SE
Valeska-Gert-Straße 5
10243 Berlin
E-mail: investor.relations@zalando.de
Internet: https://corporate.zalando.de
ISIN: DE000ZAL1111
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1224016

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1224016  05.08.2021