Zalando returns to growth, shares spark

7th May 2024 07:54

(Sharecast News) - Zalando reiterated its full-year outlook on Tuesday after the German online-only retailer posted an uptick in first-quarter volumes and swung back into the back.

The fashion specialist said while revenues dipped 0.6% to €2.2bn, group gross merchandise volume rose 1.3% to €3.3bn.

Zalando said that GMV - which measures the total value of all goods sold - had benefited from a "timely start" to the spring-summer season.

Adjusted earnings before interest and tax, meanwhile, came in at €28.3m compared to a loss of €0.7m a year previously, boosted by a higher gross margin and lower fulfilment costs.

Sandra Dembeck, chief financial officer, said: "We are excited by the positive response from customers and partners in the first quarter. We are returning to growth.

"Business to consumer customers are showing increased interest in our quality assortment, digital tools, propositions and inspiring content. Business to business customers are signing up for our unique offering."

The retailer also reiterated its full-year guidance, with both GMV and revenues forecast to grow between 0% and 5%.

"The company will continue to focus on profitable growth, with margin progression, and adjusted EBIT is expected to be between €380m and €450m," it added.

As at 1030 BST, shares in Zalando were trading 5% higher.