Zalando's operating result almost doubled in the second quarter

Positive news at Zalando: in the second quarter of the current financial year, operating profit (adjusted EBIT) increased by 87 percent. Zalando attributed this increase to, among other things, larger orders and lower fulfilment costs, according to its quarterly report. The increase in adjusted EBIT brought operating profit to 144.8 million euros.

"In the midst of the challenging retail landscape, we continue to improve efficiency in fulfilment and marketing," Zalando's chief financial officer Sandra Dembeck, said in the press release. "This commitment has delivered results this year with adjusted EBIT almost doubling in the second quarter. Such success makes us ready to shift focus to investments and growth initiatives."

While operating profit increased, sales actually decreased at Zalando. In the second quarter, sales showed a small decline of 2.5 per cent. As a result, sales came to 2.6 billion euros.

Zalando reported that it is making its forecast for the current financial year more accurate. The company now expects adjusted EBIT between EUR 300 million and EUR 350 million. Sales are expected to fall between a 1 percent to 4 percent increase.

It is a stark contrast to the results Zalando posted years ago. During pandemic year of 2020, for instance, it still posted a 23.1 percent sales surplus and in 2021 a plus of 29.7 percent. Only in 2022 did sales stabilise.

This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.