Zalando leverages ‘Summer of Sports’ for quarterly growth.
- Revenues climb 3.4% to €2.6bn amid sports-focused initiatives.
- Gross merchandise volume rises by 2.8% reaching €3.8bn.
- EBIT margin improves to 6.5%, supported by reduced operating expenses.
- Strategic investments in AI and B2B expansions highlight future plans.
Zalando has effectively capitalised on the ‘Summer of Sports’, reporting a notable increase in revenues for the second quarter of 2024. With revenues rising by 3.4% to €2.6 billion, the company’s targeted sports campaigns have clearly paid off. By launching these initiatives, particularly in major European cities and involving renowned figures such as Robert Lewandowski and David Alaba, Zalando achieved its finest monthly sports performance in June.
In addition to top-line revenue growth, the business witnessed a 2.8% rise in gross merchandise volume (GMV), reaching €3.8 billion. Zalando’s financial report attributes the success to an enhanced gross margin and reduced operating expenses, which improved the EBIT margin by 0.8 percentage points, reaching 6.5%. This financial robustness underpins the business’s capability to confirm its full-year guidance for further growth.
Further bolstering its operations, Zalando has pursued advancements in the digital realm. Notably, the company has rolled out AI-enhanced customer experiences and progressed in its business-to-business (B2B) sector. The introduction of the Zalando Assistant, built in collaboration with OpenAI, underscores the firm’s commitment to innovation and customer engagement.
Internally, the company has reappointed Astrid Arndt as chief people officer for another term, ensuring continuity in leadership. Conversely, Sandra Dembeck, chief financial officer, has opted not to renew her contract for the forthcoming year, potentially signalling strategic changes within the executive team. Meanwhile, co-founder David Schneider will transition from his co-CEO role to focus on forging strategic partnerships, suggesting a shift towards collaborative growth avenues.
Zalando’s strategic initiatives reflect its ongoing commitment to growth and innovation amidst a dynamic market.
