Zalando confirmed its guidance for the year after booking higher revenue for the first quarter thanks to limited-time offers and discounts on premium brands in an environment still marked by high inflation.
The German online fashion retailer
ZAL,
on Thursday posted revenue of 2.26 billion euros ($2.50 billion), up 2.3% on the year. Gross merchandise volume–a key indicator of sales performance–climbed 2.8% to EUR3.24 billion.
“Curated product drops with brands such as Adidas and Salomon or teaming up with designer brands to create capsule collections led to increased engagement with our customers,” said co-Chief Executive Robert Gentz. “These exclusive and limited-edition products keep our customers coming back more regularly.”
Zalando’s net loss narrowed to EUR38.5 million from EUR61.3 million in last year’s first quarter. Its adjusted loss before interest and taxes–a metric that is closely watched by analysts and investors–shrank to EUR700,000 from EUR51.8 million, generating an adjusted margin of 0%.
For 2023, Zalando said revenue could fall up to 1% or grow up to 4%. Gross merchandise volume should rise by 1% to 7%, and adjusted earnings are expected between EUR280 million and EUR350 million.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
