Zalando to Extend into Premium Sector, Pre-Owned Items

Online fashion giant Zalando plans a push into the premium sector and will begin offering customers an opportunity to buy and sell pre-owned items on its platform later this year. It announced those initiatives in tandem with its 2010 results, which saw the Berlin-based company gain 17 percent more active customers to hit 31 million. This translated to 145 million orders, worth around 8.2 billion euros in gross merchandise volume, or GMV. That is an increase of 23.6 percent over 2018’s GMV. Since declaring its ambition to become more of a platform for apparel sales than a manufacturer, GMV has become one of Zalando’s key indicators. Special events in the last quarter of 2019 – Cyber Monday and Black Friday – pushed GMV up 24.3 percent to 2.5 billion euros versus the prior year. Revenues lagged around the lower half of Zalando’s guidance for the full year. The German online giant grew these to 6.5 billion euros, an increase of 20.3 percent. Meanwhile adjusted EBIT – earnings before interest and taxes – increased to 224.9 million euros, at the higher end of guidance. In 2018, the company’s EBIT was 173.4 million euros. Zalando is also opening further fulfillment centers around Europe. Its increasingly important partner

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