Zalando ups outlook on solid start to winter season

Zalando SE reported a strong third quarter on Tuesday, raising its annual guidance thanks to a robust start to the winter season.

Zalando ups outlook on solid start to winter season

For the three months ending September 30, the Berlin-based online fashion retailer posted a net income of €44.3 million, reversing a loss of €8.2 million from the same period last year. Net income for the first nine months of the year climbed to €131.1 million, a sharp increase from €10 million year-over-year. Earnings before interest and tax (EBIT) also saw significant improvement, reaching €69.5 million in the third quarter, up from a loss of €18.9 million a year ago. For the nine months ending September 30, EBIT rose to €225 million, compared to €41.7 million last year. Revenue for the third quarter rose to €2.39 billion, up from €2.27 billion in the same period in 2022. Nine-month revenue increased slightly to €7.27 billion, compared to €7.09 billion a year earlier.

Outlook upgraded

Zalando upgraded its full-year outlook due to "stronger-than-expected consumer demand in the third quarter and a solid start to the autumn/winter season across the industry." For 2024, Zalando now anticipates revenue growth between 2% and 5%, an increase from the previous 0% to 5% estimate, which corresponds to €10.3 billion to €10.7 billion in revenue. The company also raised its adjusted EBIT forecast to a range of €440 million to €480 million, up from the prior range of €380 million to €450 million.