Zalando Reports Strong Q3 Earnings with Net Income Turnaround

Zalando SE has reported a significant turnaround in its third-quarter performance, posting a net income of 44.3 million euros, contrasting sharply with last year’s loss. The report highlights improved revenue and EBIT margins, signaling strong operational growth.

Date: 05-11-2024

AI Rating: 8

Zalando SE has demonstrated a strong recovery in its financial performance for the third quarter. The reported net income of 44.3 million euros marks a significant improvement from a loss of 8.2 million euros in the previous year, reflecting a positive trend. This transformation indicates that the company is effectively managing its costs and increasing profitability.

Furthermore, the adjusted group EBIT saw an impressive rise, climbing to 92.7 million euros from 23.2 million euros last year, illustrating enhanced operational efficiency. The EBIT margin improved to 3.9 percent, up from 1.0 percent in the same period last year, signaling a more robust business model.

On the revenue front, Zalando experienced a 5 percent increase in group revenue, achieving 2.39 billion euros, compared to 2.27 billion euros last year. This growth indicates a positive consumer response and an expanding market presence.

The gross merchandise volume (GMV) rose significantly by 7.8 percent to 3.46 billion euros, up from 3.21 billion euros last year. This growth in GMV suggests that more consumers are engaging with the platform, further enhancing Zalando's market position.

Another encouraging sign is the increase in the number of active customers, which rose by about half a million quarter on quarter, bringing the total to 50.3 million. A growing customer base often correlates with future revenue growth.

Looking ahead, Zalando has confirmed its guidance for the financial year 2024, projecting GMV growth between 3 percent and 5 percent, and revenue growth of 2 percent to 5 percent. Moreover, the expectation for adjusted EBIT to reach between 440 million and 480 million euros strengthens the outlook.

Stocks: ZLNDY