Zalando says it will focus on tech and innovation to drive growth in future. Credit: Shutterstock.

For the third quarter (Q3), Zalando earnings before interest and tax (EBIT) grew to €23.2m ($24.68m) from €13.5m for the same period a year earlier, an increase of 71.8%.

Group revenue fell 3.2% to €2.27bn from €2.35bn due to continued pressure on demand resulting from a challenging macroeconomic environment and the warmest September on record in Europe, which meant shoppers did not buy autumn and winter apparel as they usually do in this season.

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Zalando says it is now concentrating on laying further foundations for future growth with strategic initiatives such as inspiring customers with new content and storytelling formats, introducing a luxury boutique-style space in Fashion Store to improve the experience for designer brands and customers and growing the company’s logistics offering.

Last month, the company launched the B2B brand ZEOS, short for Zalando E-commerce Operating System, enabling fashion and lifestyle brands and retailers to manage their multi-channel business across Europe within one unified platform. Last year, Zalando successfully piloted multi-channel fulfilment, which is moving under the new brand and is now called ZEOS Fulfillment. Around 30 brands and retailers such as Pepe Jeans, a brand of AWWG Group, and renowned Polish shoes and accessories brand Kazar are already working with the new offering.

“Storytelling, logistics and technology are key to boosting our future growth. Our healthy balance sheet gives us the financial flexibility to make these strategic investments,” said Dr. Sandra Dembeck, Zalando CFO. “On top of that, our financial discipline meant that we were able to deliver on another quarter of improved profitability.”

In September Zalando launched a collection within its private label ZIGN, called ZIGN Studio, to adopt a circular approach that it said would incorporate the latest material innovations in an affordable way.

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