zalando just announced their results for the first half of 2022. During this first half of the year, the German marketplace has presented losses of 47.3 million euros. Something that contrasts sharply with the results obtained during the same period of 2021, when the company obtained profits of 155 million euros.
Also, these results they do inherit the downward trend that Zalando showed at the beginning of the year registering losses of 61 million euros. From the company they have related their current situation as a result of various factors: the instability and uncertainty posed by the macroeconomic outlook, inflation, the shortage of supplies and the transition of its platform. Although the latter, despite being a change to adapt to, is a joy for Zalando, since derived from the increased activity from brands and partners on your platform.
Zalando experiences a second quarter of contrasts
By focusing specifically on the second quarter, very revealing data is obtained. From April to June, Zalando earned a net profit of 14 million euros, a very remote figure, specifically 88% lower, than it reached during the second quarter of 2021: 120.4 million euros. Likewise, sales also fellstanding at 2,623 million euros (4% less).
On the other hand, the results regarding the number of active users of the marketplace were positive. The platform reported 49.3 million active users, which represents a growth of 10% this second quarter of 2022 compared to the same period of the previous year. While the loyalty program Zalando Plus broke all the schemes, since increased 164% compared to the second quarter of 2021, exceeding 1.5 million members. Also, the number of Zalando orders amounted to 67.8 million by increasing by 2.2 million.
Given these results, Robert Gentz, CEO of Zalando, wanted to be optimistic, especially based on the increase in users. The company, like many other businesses, tasted the honeys of success derived from the increase in online shopping due to the pandemic and, like these other companies, has begun to descend back into the world of mortals.
Zalando would find himself immersed in a return to normal phase and it will be the data of its second semester that will allow us to know if it manages to stabilize as expected from the company. At the moment they are focusing on boost your strategy and ensure long-term growth.
Adapting expectations to the new situation
In view of this new panorama, the company has decided reformulate your future forecasts. Initially it was estimated that the GMV grow between 16% and 23% to 17,600 million euros in 2022. However, this forecast has changed and now it is expected to increase only between 3% and 7%, up to about 15,300 million. Likewise, the long-term objective is to obtain 30,000 million euros from GMV by 2025.
Regarding his incomefrom Zalando they estimate that growth will end up being between 0% and 3%. That is, between about 10,400-10,700 million euros. Results far from the previous figures triggered by the pandemic.
Faced with this scenario, Zalando has not only modified its forecasts, but has also implemented measures such as the reducing your marketing spend or boosting the efficiency of your logistics network in Europe. For his part, Gentz has praised the ability his company and employees are showing to make Zalando adapt to the current environment while continuing to improve the experience for their customers.
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