In the first quarter, the Gross Merchandise Volume (GMV) of the German e-commerce giant increased by 1.3% to reach 3.3 billion euros compared to the same period last year. Revenue for the quarter was 2.2 billion euros, slightly lower than the 2.3 billion euros reported in the prior-year period.
Adjusted Earnings Before Interest and Tax (adjusted EBIT) for the first quarter climbed to 28.3 million euros, meeting market expectations and indicating a margin of 1.3%. This is a significant improvement from the -0.7 million euros recorded in the same period last year. The enhanced profitability can be attributed to reduced fulfillment costs and effective inventory management, resulting in an improved gross margin.
The Business-to-Consumer (B2C) segment experienced robust growth, primarily driven by increased demand in Beauty, Sports, Kids & Family categories, along with strong performance from ‘Lounge by Zalando’. Meanwhile, the Business-to-Business (B2B) segment expanded its revenue by 13% by incorporating additional multi-channel fulfillment partners.
Dr. Sandra Dembeck, Zalando’s CFO said, “As we are executing our ecosystem strategy, we are excited by the positive response from customers and partners in the first quarter. We are returning to growth. B2C customers are showing increased interest in our quality assortment, digital tools, propositions and inspiring content. B2B customers are signing up for our unique offering. Both of our growth vectors are strong and contributing to results, demonstrating the strength of our plans.”
