It was an exceptional third quarter for Zalando: the online clothing retailer saw sales rise with 29.9%. The platform aims to digitise more physical merchants. Also in Belgium, where fashion chain LolaLiza joins as a new partner.
Prepared for second wave
The third quarter was again exceptional for Zalando: gross trade volume (the total value of all goods sold) rose by 29.9% to 2.5 billion euros. Turnover increased by 21.6% to 1.8 billion euro. As a result of the corona pandemic, consumers continue to shop online, while the ‘Zalando Lounge’ outlet also saw substantial growth.
In the same period Zalando achieved an adjusted EBIT of 118.2 million euro, representing a margin of 6.4%, thanks to a significantly lower cost of sales and improved operational efficiency. Zalando also had to readjust its inventory expectations: summer clothes leftovers represented 35 million euro less than first thought.
The German fashion giant claims to be better prepared for the current second wave of the pandemic. The platform is attracting new partners, specifically in Belgium: LolaLiza is now selling clothes via the platform, which means that the brand is opening up seven new markets. Moreover, Zalando will launch its Connected Retail programme on the Belgian market in 2021, allowing physical stores to sell their products online as well.
