Zalando's profit up in Q2, guidance for 2024 confirmed

The online fashion and lifestyle products retailer Zalando said its net income in the second quarter rose to €95.7 million from €56.6 million in the second quarter of 2023.

Adjusted earnings before interest and taxes (EBIT) rose to €171.6 million from €144.8 million a year earlier.

The improvement in profitability was driven by successful inventory management and lower fulfilment costs, with the EBIT margin increasing 0.8 percentage points to 6.5% of revenue.

Gross merchandise volume (GMV) rose 2.8% to €3.8 billion in the second quarter compared with a year ago. Revenue grew 3.4% to €2.6 billion compared to the prior-year period.

Zalando confirmed its full-year guidance for 2024 and expects both GMV and revenue to grow 0% to 5% this year compared to 2023.

The company will continue to focus on profitable growth, with continued margin progression. Adjusted EBIT is expected to be between €380 million and €450 million.

Zalando announced that it reappointed Astrid Arndt as chief people officer for another four-year term, starting September 1. The company's Chief Financial Officer Sandra Dembeck decided not to renew her contract beyond her current term which ends on February 28, 2025.