Zalando’s shares dip despite ‘strong Q3 growth’

Zalando, which recently revealed a new brand identity, has today revealed strong growth across all categories, driven by a strong start to the autumn season. Despite this, the e-tailer’s shares dipped by 2.7% today.

Zalando’s third-quarter gross merchandise volume rose by 7.8% to £2.9 billion (3.5 billion euros) and revenue increased by 5% to £2.01 billion (2.4 billion euros).

Adjusted earnings before interest and taxes (adjusted EBIT) climbed from  £19.3 million (23 million euros) to £78 million (93 million euros).

During the quarter, Zalando differentiated itself by adding new brands like Remain, A-COLD-WALL*, and Marine Serre to its curated lineup. Zalando also evolved its Plus program from a paid membership to a free, points-based system designed to reward customer loyalty.

Dr. Sandra Dembeck, Chief Financial Officer at Zalando, said: “Consumers love the quality brands we are adding, spend time with our exciting digital experiences, and embrace our expanding lifestyle offerings in areas such as Sports, Beauty and Kids & Family.

“To capture further growth opportunities, we are investing into initiatives such as evolving our Plus loyalty program, offering more inspiring content, ramping up our tech hub in China and driving localised convenience for customers via our European logistics network.”

Looking ahead, Zalando confirmed its guidance, which was upgraded on 10 October 2024, for the financial year 2024.

The company expects gross merchandise volume (GMV) to grow between 3% and 5%, revenue to increase between 2% and 5% and adjusted EBIT to grow to between 440 million euros and 480 million euros.

The third-quarter 2024 financial report, as well as the earnings presentation for analysts and investors, is available on the Zalando Investor Relations website. Zalando will report the results for the full year 2024 on 6 March 2025.