- Zalando with a jump in profits - CFO leaves
Zalando, the online retailer, continues to benefit from its efficiency and cost-saving measures. Thanks to effective inventory management and lower logistics costs, its adjusted earnings before interest and taxes (EBIT) for the second quarter rose by nearly a fifth to 171.6 million euros, the DAX-listed company announced in Berlin. Net profit surged by nearly 70% year-on-year to 95.7 million euros. The company reaffirmed its annual targets.
Zalando reported strong demand, particularly in the sports, designer, and beauty categories. The gross merchandise volume (GMV) for the three months to the end of June increased by 2.8% to 3.8 billion euros. Revenue rose by 3.4% to around 2.6 billion euros.
Meanwhile, Chief Financial Officer Sandra Dembeck announced that she does not wish to extend her contract, which runs until the end of February 2025. A search for her successor is underway.
Zalando's success in increasing its earnings and profit can be partly attributed to its strategic focus on selling a wide range of popular consumer goods, such as sports equipment, designer clothing, and beauty products. The company's robust earnings report highlighted the popularity of these categories, with a notable growth in the gross merchandise volume (GMV) of these items.
