Zalando Reports Record Orders, Active Customers in Second Quarter
Zalando Reports Record Orders, Active Customers in Second Quarter
- Second quarter revenue up 20.9% to EUR 1,330.0 million, adjusted EBIT of EUR 94.0 million, 7.1% margin
- Highest number of active customers (24.6 million) placed record number of orders (29 million) in a single quarter
- Full-year revenue growth expected in the lower half of 20-25% growth target, adjusted EBIT at the low end of EUR 220-270 million range
BERLIN, AUGUST 7, 2018 // Zalando SE continued to capture market share and grew revenues in the second quarter by 20.9% to EUR 1,330.0 million, in line with its 20-25% growth target. Europe’s leading online fashion and lifestyle platform achieved an adjusted EBIT of EUR 94.0 million or a margin of 7.1% in the same period. For the financial year 2018, Zalando forecasts profitable revenue growth in the lower half of its target corridor of 20-25%, expecting adjusted EBIT at the low end of the EUR 220-270 million target range.
The second quarter was characterized by a strong development of customer KPIs: Zalando recorded 29 million orders, the highest number of orders in a single quarter. Active customers increased by 15.9% to 24.6 million, and ordered more frequently; more than four times per year in an all-time high.
Zalando Co-CEO Rubin Ritter: “The strong development in customer KPIs shows that our engine is running extremely well. We’re excited to see that our customer-centric focus is paying off, despite a continued challenging fashion market environment. Our Partner Program is growing particularly strongly, accounting for about ten percent of merchandise volume sold in the second quarter.”
Zalando launched its online Fashion Store in Ireland and the Czech Republic in the second quarter and is now present in 17 European countries. Zalando also broadened access to its offering by launching an English language version of Zalando in Germany and an Italian version in Switzerland.
In the first half of 2018, Zalando grew revenues by 21.4% to EUR 2,526.0 million and achieved an adjusted EBIT of EUR 94.4 million, or a 3.7% margin. Capital expenditure in the first half of 2018 amounted to EUR 108.8 million, reflecting investments primarily into logistics infrastructure. Due to continued strong logistics investments, the capital expenditure volume is expected to stay at an elevated level for the financial year of 2018 at around EUR 350 million.
The earnings presentation for analysts and investors is available on the Zalando Investor Relations website. Zalando will report results for the third quarter 2018 on November 6, 2018.
ZALANDO GROUP – KEY FIGURES (IN EUR MILLION)
As of January 1, 2018, Zalando changed its internal management structure. The focus is now primarily on sales channels rather than on geographical regions. Thus, the segment reporting has been adjusted accordingly. This change increases the level of responsibility and decision making within the individual sales channels. Under the new structure, our main sales channel continues to be Fashion Store (online shops of Zalando). The Offprice segment includes Zalando Lounge, the outlet stores and overstock management. The Other segment includes the private label offering zLabels and various emerging businesses. However, to ensure continuity of capital market reporting, Zalando will continue to report a breakdown of results within the Fashion Store into DACH and Rest of Europe.
While reporting was previously on a consolidated basis, from January 1, 2018 onwards, revenue and profitability generated with external business partners as well as the internal transactions between segments of Zalando are reported. Due to this change, the segment reporting has been supplemented by a reconciliation column to reconcile segment figures (including internal and external transactions) to the consolidated group figures (showing only external transactions).
|
|
Q2 2018 |
Q2 20171 |
HY1 2018 |
HY1 20171 |
|
Group revenue |
1,330.0 |
1,100.5 |
2,526.0 |
2,080.7 |
|
% growth |
20.9% |
20.1% |
21.4% |
21.5% |
|
Fashion Store |
1,233.4 |
1,017.0 |
2,327.3 |
1,925.8 |
|
% growth |
21.3% |
-- |
20.8% |
-- |
|
Thereof DACH2 |
625.8 |
542.2 |
1,177.8 |
1,017.2 |
|
% growth |
15.4% |
-- |
15.8% |
-- |
|
Thereof Rest of Europe3 |
607.6 |
474.8 |
1,149.5 |
908.6 |
|
% growth |
28.0% |
-- |
26.5% |
-- |
|
Offprice |
114.6 |
82.3 |
235.0 |
154.7 |
|
% growth |
39.3% |
-- |
51.9% |
-- |
|
Other4 |
100.8 |
81.9 |
200.6 |
166.1 |
|
% growth |
23.0% |
-- |
20.7% |
-- |
|
Reconciliation |
(118.7) |
(80.7) |
(236.8) |
(166.1) |
|
Adjusted group EBIT5 |
94.0 |
81.8 |
94.4 |
102.1 |
|
Adjusted group EBIT margin |
7.1% |
7.4% |
3.7% |
4.9% |
|
Fashion Store |
92.2 |
74.7 |
92.0 |
91.0 |
|
% adj. margin |
7.5% |
7.3% |
4.0% |
4.7% |
|
Thereof DACH |
60.0 |
57.6 |
76.7 |
94.1 |
|
% adj. margin |
9.6% |
10.6% |
6.5% |
9.3% |
|
Thereof Rest of Europe |
32.2 |
17.0 |
15.4 |
(3.0) |
|
% adj. margin |
5.3% |
3.6% |
1.3% |
(0.3%) |
|
Offprice |
7.5 |
11.8 |
16.0 |
17.9 |
|
% adj. margin |
6.5% |
14.3% |
6.8% |
11.6% |
|
Other |
(7.5) |
(4.7) |
(15.8) |
(6.9) |
|
% adj. margin |
(7.4%) |
(5.7%) |
(7.8%) |
(4.2%) |
|
Reconciliation |
1.7 |
0.0 |
2.1 |
0.0 |
|
Net working capital |
16.1 |
(37.0) |
16.1 |
(37.0) |
|
Capital expenditure |
(67.0) |
(52.1) |
(108.8) |
(130.0) |
|
Net income |
51.8 |
47.4 |
36.7 |
52.6 |
1. New segment structure from January 1, 2018, onwards. Financial years 2014-2016 not restated.
2. Fashion Store DACH is comprised of Germany, Austria and Switzerland.
3. Fashion Store Rest of Europe includes all other countries in which Zalando presently operates its online shops.
4. Other segment includes the private label offering zLabels and various emerging businesses.
5. Before expenses for equity-settled share-based payments and effects from business transactions that do not recur regularly.
ZALANDO GROUP – KEY PERFORMANCE INDICATORS
|
|
Q2 2018 |
Q2 2017 |
HY1 2018 |
HY1 2017 |
|
Site visits (m)6 |
734.3 |
595.2 |
1,447.8 |
1,212.8 |
|
% growth |
23.4% |
24.0% |
19.4% |
26.4% |
|
Mobile visit share (% of site visits)7 |
78.4% |
69.7% |
77.5% |
69.3% |
|
Change vs. comparable prior period |
8.6pp |
5.0pp |
8.2pp |
5.8pp |
|
Active customers (m)8 |
24.6 |
21.2 |
24.6 |
21.2 |
|
% growth |
15.9% |
12.6% |
15.9% |
12.6% |
|
Number of orders (m)9 |
29.0 |
22.2 |
54.4 |
42.1 |
|
% growth |
30.3% |
26.8% |
29.2% |
27.0% |
|
Average orders per active customer |
4.2 |
3.7 |
4.2 |
3.7 |
|
% growth |
13.4% |
11.2% |
13.4% |
11.2% |
|
Average basket size (EUR)10 |
60.4 |
64.5 |
60.3 |
63.8 |
|
% growth |
(6.4%) |
(2.6%) |
(5.4%) |
(3.8%) |
|
Headcount |
15,612 |
13,218 |
15,612 |
13,218 |
|
% growth |
18.1% |
10.2% |
18.1% |
10.2% |
6. Number of series of page views from the same device and the same source (via websites, mobile sites, tablet sites or apps). The series is considered ended when a page view is not recorded for longer than 30 minutes.
7. Tablets, mobile sites and apps.
8. Number of customers placing at least one order in the last twelve months irrespective of cancellations or returns.
9. Number of customer orders placed in the measurement period irrespective of cancellations or returns. An order is counted on the day the customer places the order.
10. Transactional revenue (incl. VAT and transactional volume of Partner Program) after cancellations or returns divided by the number of orders.
Contact Investor Relations - Patrick Kofler
Patrick Kofler
Director of Investor Relations
investor.relations@zalando.de