Online fashion platform Zalando has reported a promising increase in its revenue, which rose by 3.4% in the second quarter compared to the previous year, amounting to 2.6 billion euros. This positive momentum in performance leads the company to reaffirm its full-year guidance. Earlier this year, Zalando had faced a slight revenue decline of 0.6% in the first quarter, even though its Gross Merchandise Volume (GMV) reached 3.3 billion euros, marking a rise in Earnings Before Interest and Taxes (EBIT) to 28.3 million euros.

In the second quarter of 2024, Zalando managed to boost its GMV by 2.8%, reaching 3.8 billion euros, with adjusted EBIT climbing to 171.6 million euros—indicating a margin of 6.5%. The company’s active customer base increased by 300,000 since Q1, totalling 49.8 million, albeit below last year’s figures, which stood at 50.5 million.

Key elements driving growth include an expansion of lifestyle offerings in Sports, Designer, and Beauty segments, as well as investments in AI-powered tools for customer engagement. Furthermore, Zalando’s B2B services experienced a notable 10% growth, totaling 233.8 million euros.

Zalando projects a GMV and revenue increase of 0-5% compared to 2023, with an expected adjusted EBIT between 380 million euros and 450 million euros. The company also aims to enhance the shopping experience through social commerce and generative AI solutions, along with the establishment of a tech site in China to cater to European consumers.