Zalando Posts 7.6% Growth in H1, Surpasses €100 Million in Profit

Zalando maintains its momentum. The German ecommerce giant reaches the halfway point of the year on a high note. The company, which recently completed the acquisition of the About You chain, ended the period with growth in both revenue and earnings, which surpassed the €100 million mark.

Specifically, the company achieved a turnover of €5.25 billion, 7.6% more than in the first six months of the previous year. The German giant’s gross profit, meanwhile, increased at a similar rate, by 7.5%, to €2.10 billion at the end of the first half of the year.

Zalando’s profit, meanwhile, soared 22.5% to €106.5 million, up from €86.9 million. “These are very positive results, especially considering the geopolitical situation,“ the company said during the results presentation.

Zalando has increased its turnover to 5.25 billion euros

The German giant has been immersed for years in a diversification strategy whereby, in addition to selling products directly to the consumer through its website, it also operates through Zeos (Zalando Ecommerce Operating System).The German giant has been engaged for years in a diversification strategy whereby, in addition to selling products directly to consumers through its website, it also operates through Zeos (Zalando Ecommerce Operating System), however, the business line whereby it offers its logistics network to other companies.

In this regard, the German giant’s turnover through the platform stood at €4.75 billion, 7.1% more than in the first half of the previous year. Zalando’s ebit for the period in this line of business, meanwhile, increased to €160.4 million, compared to €156.6 million in the previous year.

Through Zeos, on the other hand, Zalando posted a turnover of €502.3 million euros. Despite still being far from the company’s traditional turnover, it has recorded a higher growth of almost 12% in the first six months, reaching an ebit of €5.8 million, compared to the negative figure of the previous year.

Zalando’s traditional business grew slightly less than Zeos, its B2B business line

“Despite operating in an increasingly volatile market, and even in this complex environment, there are opportunities for growth, and we at Zalando have been able to find them,“ celebrated the company, which expects to close the full year with a turnover of between €12.1 billion and €12.4 billion. The German giant also estimates an adjusted ebit of between €550 million and €600 million, thanks both to Zalando’s momentum in the first half of the year and the long-term benefit of a cost efficiency strategy.

“Clearly, consumer confidence is not as strong at the moment, but we are confident of replicating the growth noted in the first half of the year,“ the company explained. Looking ahead to the rest of the year, Zalando also plans to take full control of About You, the platform in which it has held more than 90% of its capital since July this year.

From this acquisition, which was formalized a few weeks ago after the approval of the European Commission, the German giant has already estimated the first benefits: from 2029, About You is expected to contribute up to one hundred million euros annually to the company’s ebit.