Zalando grows revenues by over a quarter as pent-up demand flows through

Online fashion platform Zalando has grown its revenues in Q2 by more than a quarter as it benefited from pent-up demand shifting from earlier in the year.

Its preliminary figures for the quarter show group revenue growth of 26-28% to Euros 2 billion compared with Euros 1.6 billion in 2019 as more than three million new customers shopped with the company. This is expected to lead to its full-year 2020 revenue growth hitting 15-20%.

Zalando has been a major beneficiary of the accelerated shift to digital as a result of Covid-19. According to the Salesforce Q2 Shopping Index digital revenues grew by a global average of 71% compared with last year, the largest increase seen during the seven years of the Index. 

The fashion company also experienced strong growth – of around 20% – at its Partner Program that attracted 180 new brands between April and June. Among them is H&M-owned Arket that will begin trading its collections on the platform in August. The increased activity in the Partner Program has driven year-on-year gross merchandise value (GMV) growth of over 100%.

David Schröder, CFO of Zalando, said: “The high number of new customers shows that we offer a compelling customer experience in these challenging times. Due to prevailing health and safety concerns, customers generally like to shop online, and they particularly like to shop with us. As a result, we were able to successfully scale our platform business in the second quarter and to make significant progress in building the Starting Point for Fashion in Europe.”