Daily Newsletter

06 November 2023

Daily Newsletter

06 November 2023

Zalando invests in tech, logistics to drive growth on positive Q3

Online retailer Zalando says it is pumping cash into logistics operations and technology to drive future growth following a jump in Q3 earnings.

Hannah Abdulla November 03 2023

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.

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.

Womenswear and accessories segment set to witness rapid growth within the outdoor sportswear market

Per GlobalData estimates, the Eastern European food industry was valued at $180.5 billion in 2022 and is projected to grow at a CAGR of >4% by 2027. The top five companies together account for a value share of just 5.3% in 2022, with Mondelēz leading the pack. The Czech Republic, Poland, Romania, and Hungary were identified as high-potential countries, primarily due to the large size of their food industries, their high

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close