Europe’s biggest online fashion retailer, Zalando, has reported strong revenue growth of more than 20% for the second quarter of 2019, in which it experienced a record number of orders.
Group revenue at the Berlin-based retailer was up 20.1% compared with the same period last year to €1.6bn (£1.5bn). Fashion Store revenue grew by 19% to €1.5bn (£1.4bn).
Active customers grew by 15.2% to 28.3 million across Zalando’s 17 European markets. In the same period, site visits increased by 34.3% to 986.4 million, 84% of which came through mobile devices. This resulted in a record number of 36.1 million orders.
Gross merchandise volume (GMV) grew by 23.7% to €2bn (£1.8bn) in the period and Zalando reported an adjusted EBIT of €101.7m (£92.6m).
Zalando will start work on its new warehouse in the Netherlands this summer to improve logistics in western Europe. It also plans to extend its Partner Program and expand its relationships with offline retailers to broaden its sustainable and premium fashion assortment.
Chief financial officer David Schröder said: ”Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy.”
The company has raised its profitability outlook to the upper half of the adjusted EBIT range of €175m-€225m (£159m-£205m). GMV growth is expected to remain between 20% and 25%.