Zalando has said it expects its full year revenue growth to be at the lower end of its forecast despite achieving record order and customer numbers in Q2.
The German-based global online giant said its full-year revenue growth would be in the lower half of its target corridor of 20-25%, while it expected adjusted EBIT to be at the low end of the €220m-270m target range.
This softening of its forecast comes despite Zalando achieving a record 29m orders in the quarter and increasing its active customer base by 15.9% to 24.6m. Average order frequency was also up at four times per year. Revenues for the quarter hit €1.3bn, up 20.9%, while EBIT reached €94m giving a margin of 7.1%.
Zalando co-CEO Rubin Ritter commented: “The strong development in customer KPIs shows that our engine is running extremely well. We’re excited to see that our customer-centric focus is paying off, despite a continued challenging fashion market environment. Our Partner Program is growing particularly strongly, accounting for about ten percent of merchandise volume sold in the second quarter.”
During the quarter the business launched its online Fashion Store in Ireland and the Czech Republic in the second quarter and is now present in 17 European countries. It also broadened access to its offering by launching an English language version of Zalando in Germany and an Italian version in Switzerland.
Last month it opened its first bricks & mortar beauty store, the Beauty Station in Berlin, in partnership with the Estée Lauder group.