Zalando lifts Q3 adjusted profit as B2B business grows strongly

what happened

German online fashion platform Zalando reported that revenue for the three months to September rose 5.1% to 3.17 billion euros. Gross merchandise volume climbed 7.5% to 4.54 billion euros. B2B revenue jumped 27.9% to 354.4 million euros, and the division's adjusted EBIT more than doubled to 42.2 million euros.

Consumer revenue rose 2.8%, but its adjusted EBIT fell 15.9%. Group adjusted EBIT grew 10.6% to 106.5 million euros, while gross margin slipped 90 basis points to 38.7%. The company swung to a net loss of 18 million euros from a 12.5 million euro profit a year earlier. It also launched Zalando Extended and reaffirmed its full-year outlook. According to TradingView, the shares were up 1.9% in Frankfurt at the time of reporting.

why it matters

Strong B2B growth and a reaffirmed outlook support interest in the stock, but the quarterly net loss and lower gross margin, tied to customer pricing investments, temper the picture. Investors will watch whether the consumer division can recover its profitability.

market impact

Zalando shares: strong B2B growth and reaffirmed outlook support the stock, while the loss and margin decline weigh

• ↔Zalando shares mixed — strong B2B growth and the outlook support the stock, while the loss and lower gross margin weigh

tags

instruments